FTX Trading Ltd Reaches Global Settlement with Debtors
FTX Trading Ltd., a bankrupt crypto exchange, recently reached a global settlement with the Joint Official Liquidators representing its subsidiary, FTX Digital Markets Ltd., which is facing liquidation in The Bahamas. This settlement aims to address the legal issues arising from the liquidation proceedings.
Terms of the Global Settlement Agreement
Under the terms of the agreement, FTX Debtors and FTX Digital Markets will coordinate to pool assets and establish reserves to ensure equitable distributions to FTX.com customers, regardless of the legal proceedings in the U.S. or The Bahamas. Customers will also have the choice of where their claims will be reconciled and paid.
The settlement is expected to solve the cross-border legal challenges posed by the FTX group’s collapse, providing consistent valuation of claims in both jurisdictions without adjustments for post-petition price fluctuations.
FTX CEO Comments on the Settlement
John J. Ray III, CEO of FTX Debtors, described the settlement as a significant achievement that prioritizes the interests of FTX.com customers while respecting all jurisdictions involved.
Hot Take: FTX’s Forward Progress with Global Settlement
FTX’s global settlement marks a crucial step in resolving legal issues and prioritizing customer interests, ensuring equitable distributions and consistency in claim valuation across jurisdictions.
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