FTX submitted its latest restructuring plan on December 16, local time, which includes returning billions of dollars to customers and creditors, kicking off a final round of potential debate over how best to end the bankruptcy case of the fraud-hit crypto company. But the new restructuring plan leaves some of the most important questions unanswered, including whether FTX will restart its shuttered cryptocurrency exchange, how the company will estimate the value of some digital tokens, and how much money creditors can expect to recover.
The plan will be put to creditors for a vote next year, possibly adding some key details, before going to U.S. Bankruptcy Judge John Dorsey for final approval. It is reported that FTX’s major creditors and customer groups have agreed to the general framework of the plan.
The plan calls for billions of dollars to be distributed in cash to customers and creditors after most of FTX’s cryptocurrency holdings are liquidated. But this could result in millions of dollars in losses for FTX’s creditors, as the plan proposes valuing their claims based on cryptocurrency prices on November 11, 2022, the date FTX filed for bankruptcy.
Last month, FTX founder Sam Bankman-Fried was found guilty on seven counts and could face up to 110 years in prison.
Since FTX filed for bankruptcy, advisers have been tracking the company’s assets and trying to untangle the complex web of debt owed to various creditors, including customers who invested cash and cryptocurrency on the trading platform.
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