Bankrupt Bitcoin Exchange FTX Submitted a Restructuring Plan to the Court! Will Users’ Balances Be Refunded?

Facing a major collapse in November 2022, the management of crypto organization FTX has submitted a comprehensive restructuring plan to the Delaware court in order to conclude bankruptcy proceedings.

FTX Prepared Restructuring Plan to Finalize Bankruptcy Proceedings

As part of the bankruptcy plan, asset values for creditor claims will be calculated based on prices recorded on the day FTX filed for bankruptcy in November 2022.

The plan offered by the company categorizes creditor and customer claims according to the priority assigned by the company.

This proposal follows earlier informal proposals that planned to return up to 90% of the funds to creditors.

The newly presented plan outlines a structured approach to handling creditor and customer claims and emphasizes efficiency in value delivery.

The proposed plan is expected to face opposition from various creditor groups. The plan needs court approval and a hearing date is anticipated for this purpose in 2024.

FTX’s bankruptcy and subsequent restructuring efforts underscore the challenges and complexities associated with the evolving landscape of cryptocurrency businesses. The outcome of this case will be closely monitored as it unfolds through the court confirmation process.

*This is not investment advice.