FTX debtors and liquidators have reached a ‘new and mutually beneficial’ agreement
Debtors of defunct cryptocurrency exchange FTX have announced an international settlement for the firm's Bahamian arm with joint official liquidators as part of bankruptcy proceedings.
In a Dec. 19 announcement, FTX borrowers plan to merge assets with FTX Digital Markets as part of efforts to distribute funds to users of the defunct crypto exchange. The companies It is a “novel and universally useful solution” based on cross-border legal issues related to the November 2022 FTX collapse, he said.
Under the terms of the proposed settlement – which has been approved by the United States Bankruptcy Court for the District of Delaware and the Supreme Court of the Bahamas – all FTX users who do not have claims pending in court will be paid in US dollars for losses in cash or digital assets, including intangible tokens (NFTs). Except. Eligible beneficiaries with claims will be able to vote on the payment plan in the second quarter of 2024.
Proposed Settlement Zoning:
“FTT's interests are treated as equity in FTX Borrowers and FTX Digital Markets and receive no recovery.”
Following the departure of Sam Bankman-Fried, FTX CEO John J. Ray III said, “The global settlement agreement is another important milestone for FTX's borrowers.” “The unique challenges posed by the conflicting documents of FTX Borrowers and FTX Digital Markets were some of the toughest the team faced. But early on we realized we had an overlapping constituency: FTX.com's customers.”
The FTX Debtors entered into a Global Settlement Agreement with the Joint Official Liquidators on behalf of FTX Digital Markets Ltd. Read more here: https://t.co/cf5pbFvcEV
— FTX (@FTX_Official) December 19, 2023
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The announcement was the latest update in FTX's bankruptcy proceedings, which began in November 2022 following the exchange's collapse. In November 2023, Banman-Fried was found guilty of seven felony charges related to the misappropriation of funds between FTX and Alameda Research. He is scheduled to be sentenced in March.
FTX's debtors have been filing periodic petitions in Delaware bankruptcy court to sell the company's assets and pay off creditors. A judge previously signed an agreement between the sale of LedgerX, $873 million in trust assets, $3.4 million in digital assets and FTX and Genesis.
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