FTX received court approval on Monday for its bankruptcy plan, which would allow it to fully repay the assets it has recovered since the collapse of its once-leading cryptocurrency exchange.
U.S. bankruptcy judge John Dorsey approved the rainfall plan at a court hearing in Wilmington, Delaware, saying FTX’s success makes it “how to handle the very complex Chapter 11 bankruptcy proceedings Model case.”
The program is built on a range of settlements with FTX customers and creditors, U.S. government agencies, and being appointed to reduce FTX operations outside the United States.
These settlements allow FTX to first use its assets to repay its clients on its cryptocurrency exchanges before paying potential competition claims made by government regulators. FTX plans to repay 98% of its customers within 60 days after the effective date of the plan – customers holding US$50,000 (approximately Rs 41.9 lakh) (approximately Rs 41.9 lakh).
Once the world’s tallest crypto exchange, FTX collapsed after the news, and founder Sam Bankman Fried took client money to pay for risky bets made by his hedge fund Alameda Research. Bankman Fried, who was sentenced to 25 years in prison for stealing from an FTX client in March, appealed his conviction.
FTX is still in talks with the US Department of Justice’s $1 billion (about Rs 83,96 crore) that the U.S. Department of Justice has seized during the criminal proceedings. Court documents show that FTX shareholders do not usually get any gains in bankruptcy proceedings, and they may receive up to $230 million (about Rs 1,931 crore) from funds seized by the Justice Department.
FTX estimates it will have $14.7 billion (approximately Rs 123.43 crore) and $16.5 billion (approximately Rs 138,538 crore) to repay creditors, enough to pay the client at least for the client’s account value to pay the client’s account value. 118% As of November 2022, the company filed for bankruptcy.
U.S. government agencies, including the Commodity Futures Trading Commission and the IRS, agreed to give FTX priority to customer repayments over fines and tax debts, and liquidators appointed in the Bahamas agreed to previously question the company’s power to apply for a company with FTX after previous questions about the company’s power to apply for a company cooperate. Bankruptcy in the United States.
The result is a victory for creditors, which is able to restore the cash and crypto assets that have disappeared during the company’s chaotic crash, FTX said. The company has also raised additional funds by selling other assets, including investments in AI startups such as technology companies.
“Today’s achievements are achievable, thanks to the experience and relentless work of the team of professionals supporting the case, who recovered billions of dollars by rebuilding FTX’s books from the ground and assets from around the globe Provided assets,” FTX CEO John. Ray said in a statement Monday.
Customers responded differently to the program, with many expressing disappointment as the demise of FTX made them miss the strong rebound in crypto prices since the market bottomed out in 2022. Some clients have objected to the plan, demanding higher repayments to reflect the latest cryptocurrency value rise.
David Adler, a lawyer representing four opposing creditors, said Bitcoin’s price, for example, has risen above $63,000 (about Rs 1.34 crore) in November 2022 to more than $63,000 (about 5.28 million) rupee). Adler said customers who deposited bitcoin on FTX exchanges found it difficult to accept FTX’s claim that they were getting 100% recovery based on lower prices two years ago.
FTX said it was impossible to simply return crypto assets stored by customers because their assets disappeared and blow up Bankman Fried.
According to the company, only 0.1% of FTX.com’s Bitcoin was believed to have been deposited on the exchange’s Bitcoin at the time of bankruptcy filing. Steve Coverick, a financial adviser at FTX, testified on Monday that buying billions of crypto assets on the open market would be “expensive” to be repaid with the same type of cryptocurrency before bankruptcy client.
©Thomson Reuters 2024
(This story has not been edited by Tech Word News’s staff and is automatically generated from the joint feed.)
