FTX Trading Ltd. and its subsidiary, FTX Digital Markets, have reached a global settlement to address the challenges arising from the collapse of the FTX group in November 2022. The settlement is subject to approval from the U.S. Bankruptcy Court for the District of Delaware and the Supreme Court of The Bahamas.
Under the terms of the agreement, all FTX users, except those with pending claims, will be compensated in U.S. dollars for their losses in cash or digital assets, excluding nonfungible tokens (NFTs). The settlement terms also state that any interests tied to the FTT token held against both FTX Debtors and FTX Digital Markets will be classified as equity and will not be part of the recovery process.
Customers of FTX.com will have the opportunity to vote on their preference for claim reimbursement in the second quarter of 2024, choosing between the U.S. or Bahamas jurisdiction. This approach aims to minimize economic disparities among claim holders and streamline the claims process, ensuring consistent and fair treatment for all FTX.com customers regardless of their jurisdiction.
John J. Ray III, the CEO of FTX, emphasized the settlement as a critical milestone, highlighting its focus on customer interests and the complex legal challenges faced due to conflicting filings by the FTX Debtors and FTX Digital Markets.
The settlement comes after the tumultuous events that led to the collapse of the FTX group in November 2022. Former CEO Sam Bankman-Fried was found guilty on multiple felony counts related to the misuse of funds between FTX and Alameda Research. His sentencing is scheduled for March 2024.
Throughout the bankruptcy proceedings, FTX debtors have been actively filing motions to sell off company assets and repay creditors. The court has already granted approvals for sales, including the sale of LedgerX, significant amounts in trust assets, digital assets, and a settlement with Genesis.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | 🇧🇸 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | John J. Ray III, Sam Bankman-Fried, None |
| Companies | FTX Trading Ltd., U.S. Bankruptcy Court for the District of Delaware, FTX.com, Supreme Court of The Bahamas, FTX Digital Markets |
| Currencies | FTX, US Dollar |
| Securities | None |
