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A HAPPY ENDING?
Well, the FTX saga is still ongoing. The misappropriated BILLIONS of dollars are still to be found and recovered. Is there any hope for FTX customers that they'll ever get to get their money back?
It turns out that yes, there's a tiny ray of hope shining through the dark clouds of corruption and lies!
Here's some uplifting updates: FTX and FTX.US clients stand to recover a remarkable portion of their assets as a proposed settlement, aiming to restore over 90% of assets to customers, progresses through bankruptcy proceedings.
The breakthrough, announced on October 17th, resulted from extensive negotiations involving unsecured creditors, non-US customer groups, and class-action litigants, addressing disputes over customer property.
While the official court filing for endorsement is expected by December 16th, an initial notice was filed with a Delaware-based US bankruptcy court on October 16th, highlighting the progress made in FTX's Chapter 11 bankruptcy proceedings.
The proposed settlement's central feature is the "shortfall claim," which could result in FTX.com and FTX.US customers collectively regaining approximately 90% of their assets, with an estimated shortfall claim of $8.9 billion for FTX.com and $166 million for FTX.US. Pending approval, the disbursement of these assets is targeted for Q2 2024.
John J. Ray III, the current FTX CEO and Chief Restructuring Officer, lauded the settlement's terms, acknowledging the substantial value created from a challenging financial situation:
"Together, starting in the most challenging financial disaster I have seen, the debtors and their creditors have created enormous value from a situation that easily could have been a near-total loss for customers."
The plan outlines a division of assets into three distinct categories, with the shortfall claim applying to FTX.com and FTX.US customers. However, it's important to note that not all customers will be fully compensated, and FTX.com users may face a higher percentage of losses compared to FTX.US users.
Observers have noted that the settlement proposal includes provisions to reduce customer claims for those who withdrew more than $250,000 within nine days of the bankruptcy announcement, while claims below $250,000 remain unaffected.
Certain insiders, affiliates, and customers with knowledge of misappropriation and mingling of customer and corporate funds may also be excluded from the settlement.
The proposed settlement of customer assets from the bankrupt FTX and FTX.US platforms carries significant implications for asset recovery in the crypto industry, potentially setting a precedent for similar cases in the future, pending court approval.
TL;DR:Ā FTX customers might have a glimmer of hope as a proposed settlement promises to recover over 90% of their assets, with a projected disbursement of approximately $9 billion, though not all clients will be fully compensated, and some exclusions apply. The breakthrough in FTX's Chapter 11 bankruptcy proceedings follows negotiations involving various stakeholders and has significant implications for potential asset recovery in the crypto industry.
SELECTED MEME OF THE DAY
