FTX Debtors and FTX Digital Markets Reach Global Settlement Agreement
FTX Debtors and FTX Digital Markets have announced a global settlement agreement with the Joint Official Liquidators (JOLs) representing FTX Digital Markets. This agreement aims to address the legal challenges arising from the collapse of the FTX group and propose a mutually beneficial solution.
Key Provisions of the Global Settlement Agreement
The Global Settlement Agreement includes several key provisions to ensure a consensual resolution:
- The debtors and FTX Digital Markets will pool their assets, allowing for consistent distributions to FTX.com customers in both proceedings.
- Customers, excluding insiders and certain excluded customers, can choose between reconciling and receiving payments in the Chapter 11 cases or the liquidation proceeding for FTX Digital Markets.
- The debtors and Digital Markets will align their approaches to valuing customer claims to minimize discrepancies.
Flexibility for FTX.com Customers
Eligible customers can elect the jurisdiction in which they want their claims reconciled and paid. The election can be made during the second quarter of 2024 through Chapter 11 plan ballots or a separate proof of debt form.
Praise for the Global Settlement Agreement
John J. Ray III, CEO and Chief Restructuring Officer, expressed satisfaction with the settlement, highlighting its alignment with customer interests and recognition of the role played by the Joint Official Liquidators and The Bahamas in recovery efforts.
Hot Take: FTT Surges Following Favorable Resolution
Following the positive resolution achieved in the Chapter 11 cases, FTT has experienced a significant surge of 13% within a few hours. The current trading price for FTT stands at $3.7700.
Featured image from Shutterstock, chart from TradingView.com
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