FTX’s payout plan calls for billions of dollars in cash to be distributed once most of the finances held in the cryptocurrency are liquidated.
However, in drafting the document, lawyers left some of the most important questions unanswered, including whether FTX will relaunch its defunct crypto exchange, how the company will value the value of some digital tokens and how much creditors can expect to get back.
The new management of the company plans to submit the plan for approval next year. It will first be reviewed by creditors and then submitted to US Bankruptcy Judge John Dorsey for final approval.
Bloomberg claims that major groups of FTX creditors and clients agreed to the plan.
FTX lawyers recently said that the IRS’s proposed legislation would eliminate the ability to recover losses for most creditors.
Let’s remember that in November the appeals court rejected all of Sam Bankman-Fried’s requests for temporary release. The former head of FTX will remain in custody until his sentencing on March 28, 2024.
Source: Bits
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