FTX payment plan approved by U.S judge
A Delaware judge accepted FTX's bankruptcy plan, which calls for paying consumers back with interest and cash, despite a demand for Bitcoin payments.
A Delaware judge accepted FTX’s bankruptcy plan, which calls for paying consumers back with interest and cash, despite a demand for Bitcoin payments.
Judge John Dorsey of the U.S. District of Delaware Bankruptcy Court decided to approve FTX’s repayment, which could disburse assets valued up to $16 billion.
Two years after the crypto exchange collapsed, 98% of creditors were approved to receive 118% of their claims in cash.
Sunil Kavuri, a spokesman for the largest group of FTX creditors, advocated bitcoin or in-kind compensation, even though 94% of claimants approved of the idea.
Nevertheless, Judge Dorsey rejected the proposal during a bankruptcy hearing on October 7. The value of FTX’s exchange token (FTT) was essentially zero according to the court and there was no case for potential price growth. Judge Dorsey ended the 2022 tale with the demise of one of the biggest centralized cryptocurrency exchanges at the time,
Users and US authorities accused Sam Bankman-Fried’s organization of fraud after discovering documents proving it had embezzled customer monies and fabricated financial statements.
Bankman-Fried and other members of the FTX leadership were promptly removed following the company’s Chapter 11 bankruptcy filing. Bankman-Fried was found guilty and sentenced to 25 years following a brief trial and several testimonies from SBF’s close acquaintances,
He is attempting to appeal the ruling, claiming that Federal Judge Lewis A. Kaplan made an unfair conclusion. Gary Wang, Nishad Singh, and Caroline Ellison are among the former high-ranking officials who entered into plea deals with federal prosecutors in exchange for reduced terms. Ellison received a two-year prison sentence late last month from a court.
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