Revised Settlement Proposal for Bankrupt Crypto Exchange FTX
The debtors of bankrupt crypto exchange FTX have revised their motion for settlement after objections from the U.S. Trustee. The latest proposal includes the U.S. Trustee as a noticed party and reduces the maximum settled value for claims from $10 million to $7 million. Monthly reports of executed settlements will also be filed. The objections from noticed parties must be resolved by the court before the claim process can proceed. The two creditor committees involved are the Official Committee of Unsecured Creditors and the ad hoc committee of international customers. The U.S. Trustee objected to the earlier motion, stating that $10 million is too high for a “small” claim without adequate notice. FRX, formerly the world’s third largest digital assets exchange, filed for bankruptcy in November 2020.
Key Points:
– Debtors of bankrupt crypto exchange FTX have revised their settlement proposal.
– The U.S. Trustee objected to the earlier motion.
– The latest proposal includes the U.S. Trustee as a noticed party.
– The maximum settled value for claims is reduced from $10 million to $7 million.
– Monthly reports of executed settlements will be filed.
Hot Take:
The revised settlement proposal for bankrupt crypto exchange FTX shows an effort to address the concerns raised by the U.S. Trustee. By including the U.S. Trustee as a noticed party and reducing the maximum settled value for claims, the debtors aim to move forward with the claim process. This development highlights the complexities and challenges faced in the settlement process for bankrupt crypto exchanges.
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