[NEWS] FTX files revised creditor repayment plan

On the 16th, the asset management organization of FTX, a cryptocurrency exchange that went bankrupt last year, submitted a revised plan for the distribution requests of the exchange's users and creditors.

According to the submitted restructuring plan, FTX will repay billions of dollars to customers and creditors. The value of the claims will be calculated based on the asset price as of November 11, 2022, the date of the bankruptcy filing. The value of the crypto assets will be converted into cash based on the rate at the time of bankruptcy.

It also explained that it aims to maximize value for all creditors and distribute efficiently.

FTX also plans to sell investment trusts and other assets it holds in order to distribute dollar-denominated assets to creditors. At the end of November, the bankruptcy court approved the proposed sale of approximately $874 million (approximately 125 billion yen) worth of cryptocurrency investment trusts from Grayscale and Bitwise.

FTX owes $3.1 billion to 50 of its largest investors and more than $5 billion to 9 million other customers.

The IRS claims that FTX still owes $44 billion in back taxes, raising concerns that it may withdraw funds before users can recover their losses.

In a statement, FTX said, "Our plan and this disclosure statement seek to create the best, fairest, and most economical outcome for all creditors and stakeholders."

The plan will be voted on by creditors as soon as next year, and more details will be worked out before final approval from the court. The largest creditors appear to be in agreement with the plan.

Sentencing for former CEO scheduled for March next year

As FTX's restructuring plan progresses, the sentencing date for founder and former CEO Sam Bankman-Fried is fast approaching.

Last month, Bankman-Fried was found guilty of seven charges, including fraud, and could face more than 100 years in prison without parole.

Another trial is scheduled to begin in March next year, and if he is found guilty, his sentence is likely to be even longer.

John J. Ray, who took over FTX from Bankman-Fried, and others have recovered assets worth $5 billion so far and plan to liquidate another $4.6 billion (about 660 billion yen) to repay creditors.

Galaxy Digital, which holds the assets held by FTX, is also increasing its assets under management. Assets under management have grown to $5.3 billion from $1.7 billion a year ago.

Reference:Court documents
Image: Shutterstock

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