The Supreme Court of the Bahamas and the United States Bankruptcy Court for the District of Delaware are yet to approve the suggested settlement. As part of insolvency proceedings, debtors for FTX, a nonoperational exchange, have revealed an international settlement with the Joint Official Liquidators for the company’s Bahamian branch.
A December 19 announcement showed that FTX debtors intended to amass assets with FTX Digital Markets as part of the determination to disburse funds to the nonoperational crypto exchange’s users.
FTX Seeks to Repay Customers’ Funds
According to the firm, the settlement was a ‘new and jointly helpful solution’ founded on cross-border legal problems associated with FTX’s fall in November last year.
The suggested settlement’s terms, subject to consent by the Supreme Court of the Bahamas and the U.S. Bankruptcy Court for the District of Delaware, will result in FTX users who do not have pending claims with the court to be paid in United States dollars for losses in digital assets or cash, excluding nonfungible tokens (NFTs).
Qualified users can vote on the repayment plan in the second quarter of next year. Additionally, the suggested settlement showed that FTT interests against FTX Digital Markets and FTX debtors are going to be handled as equity and not get any recovery.
John J. Ray III, who became FTX’s chief executive officer after Sam Bankman-Fried’s (SBF’s) exit, said the Global Settlement Agreement is another breakthrough for the FTX Debtors. The distinctive problems raised by the FTX Markets’ and FTX Debtors’ differing filings have been some of the most difficult the team has encountered.
FTX Legal Disputes with Debtors Heightens
However, they established at the start that they have an overlapping constituency, the FTX.com clients. The announcement was the most recent update in the collapsed exchange’s insolvency proceedings, which began after its fall in November last year.
Last month, SBF was found guilty of seven felony charges associated with misappropriating funds between Alameda Research and FTX. His sentencing will happen in March. FTX debtors have frequently filed motions with the Delaware insolvency court to sell firm assets and settle debts.
Already, a judge has signed off LedgerX’s sale, digital assets worth $3.4B, trust assets worth $873M, and a settlement between FTX and Genesis.
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