FTX Shares Details on Customer Shortfall Settlement Plan
The post FTX Shares Details on Customer Shortfall Settlement Plan appeared on BitcoinEthereumNews.com. In a filing on Monday, October 16, FTX Debtors announced the settlement of customer property disputes as part of its pending Chapter 11 cases. The customer shortfall settlement will be part of the Amended Plan of Reorganization, that FTX plans to file by December 2023. Subject to approval by the Bankruptcy Court, the proposed amended plan anticipates customers globally receiving over 90% of the distributable value. This customer shortfall settlement aims to address the customer property dispute initiated against the FTX Debtors and support the confirmation of the amended plan by the second quarter of 2024. The underlying customer property litigation contended that users of FTX.com and FTX US held property rights in specific assets, rather than an unsecured claim on par with general creditors. The Customer Shortfall Settlement resolves this dispute by granting customers an unsecured claim against the FTX Debtors with equitable priority over particular segregated or acquired assets. As per @spreekaway, the Debtors propose a settlement option where you can reimburse 15% of your net withdrawals made within the past 9 days from the date of bankruptcy filing. If your net withdrawals during this period exceed $250,000, you can settle the 15% and they will refrain from pursuing legal action. However, if your net withdrawals in the last 9 days amount to less than $250,000, they will not pursue any legal action against you On FTX customer clawbacks: Debtors offer settlement of 15% of net withdrawals within 9 days of bankruptcy filing, pic.twitter.com/IJ3jRwfhcm — Spreek (@spreekaway) October 17, 2023 Details of the FTX Amended Plan The Amended Plan closely resembles the Draft Plan initially presented by the FTX Debtors for discussion on July 1, 2023. Under the provisions of the Amended Plan: The FTX Debtors would categorize the bulk of their assets into three distinct pools: assets…
The post FTX Shares Details on Customer Shortfall Settlement Plan appeared on BitcoinEthereumNews.com.
In a filing on Monday, October 16, FTX Debtors announced the settlement of customer property disputes as part of its pending Chapter 11 cases. The customer shortfall settlement will be part of the Amended Plan of Reorganization, that FTX plans to file by December 2023. Subject to approval by the Bankruptcy Court, the proposed amended plan anticipates customers globally receiving over 90% of the distributable value. This customer shortfall settlement aims to address the customer property dispute initiated against the FTX Debtors and support the confirmation of the amended plan by the second quarter of 2024. The underlying customer property litigation contended that users of FTX.com and FTX US held property rights in specific assets, rather than an unsecured claim on par with general creditors. The Customer Shortfall Settlement resolves this dispute by granting customers an unsecured claim against the FTX Debtors with equitable priority over particular segregated or acquired assets. As per @spreekaway, the Debtors propose a settlement option where you can reimburse 15% of your net withdrawals made within the past 9 days from the date of bankruptcy filing. If your net withdrawals during this period exceed $250,000, you can settle the 15% and they will refrain from pursuing legal action. However, if your net withdrawals in the last 9 days amount to less than $250,000, they will not pursue any legal action against you On FTX customer clawbacks: Debtors offer settlement of 15% of net withdrawals within 9 days of bankruptcy filing, pic.twitter.com/IJ3jRwfhcm — Spreek (@spreekaway) October 17, 2023 Details of the FTX Amended Plan The Amended Plan closely resembles the Draft Plan initially presented by the FTX Debtors for discussion on July 1, 2023. Under the provisions of the Amended Plan: The FTX Debtors would categorize the bulk of their assets into three distinct pools: assets…
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