Bankrupt crypto exchange FTX announced today that its court-approved reorganization plan will take effect in January 2025. Next month, debtor FTX will finalize arrangements with distributors to reimburse legacy users, especially those located overseas.
The reorganization plan has sparked dissatisfaction among creditors, but FTX is seeking to maximize recovered assets.
Reorganization at FTX
Recently press release FTX claims it is nearly ready to move forward with its court-approved reorganization plan. Under this plan, FTX debtors hope to enter into final agreements with fund distributors in December and begin reimbursing plaintiffs in January 2025.
“We are proud to announce that we will begin distributing funds in early 2025. While we continue to take action to maximize recovery, we are ready to reach (this) agreement… and return funds to creditors and customers as quickly as possible,” said John J. Ray III, CEO and Chief Restructuring Officer of Debtor FTX.
Everything seems to be finished FTX Story now that’s it famous founder Sam Bankman-Fried is behind bars. Bankman-Fried is currently appealing his criminal sentence, but several parties are opposing it. One of them is one of the founders of FTX Gary Wang received no prison sentence because of his extensive testimony against the former CEO.
Apart from that, though The SDNY US Attorney’s Office expects a reduction in the crackdown on crypto under the Trump administration, there is an exception for Bankman-Fried. Prosecutors want to finalize a definite sentence in this important case, despite a change in leadership.
His criminal behavior at FTX made national headlines, and law enforcement wanted his own notoriety.
However, the process still causes frustration. FTX creditors will reportedly recover between 10-25% of their fraudulent holdingswhich fuels dissatisfaction. The exchange, for its part, has attempted to provide as much as possible.
He settled the lawsuit with ByBit to reduce overhead costs and have unlock new settings to recover other losses. The value of its FTT token also soared, possibly providing liquidity.
Ultimately, this announcement does not change the fundamental plans for reorganization at FTX. The defunct exchange will continue its efforts to recover assets, and will soon begin transferring those assets to existing users.
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