{"id":175655,"date":"2023-10-17T12:09:27","date_gmt":"2023-10-17T06:39:27","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=175655"},"modified":"2023-10-17T12:09:27","modified_gmt":"2023-10-17T06:39:27","slug":"ftx-customers-could-get-9b-shortfall-claim-payout-by-mid-2024-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ftx-customers-could-get-9b-shortfall-claim-payout-by-mid-2024-crypto-news\/","title":{"rendered":"FTX customers could get $9B shortfall claim payout by mid-2024 – Crypto News"},"content":{"rendered":"
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The customers of bankrupt crypto exchanges FTX and FTX.US could see over 90% of assets returned to them by the end of the second quarter of 2024 after a proposed settlement was reached between FTX creditors and debtors.<\/p>\n

On Oct. 17, FTX debtors said<\/a> they reached a \u201cmajor milestone\u201d in their Chapter 11 case after \u201cextensive discussions\u201d with the unsecured creditors\u2019 committee, a committee of non-United States customers, and class action plaintiffs regarding customer property disputes.<\/p>\n

FTX debtors filed<\/a> a notice of the proposed settlement with a Delaware-based U.S. bankruptcy court on Oct. 16 (for information purposes). However, they need to submit<\/a> an official filing by Dec. 16 seeking the court\u2019s approval.<\/p>\n

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(1\/4) The FTX Debtors have announced another major milestone in their chapter 11 cases.<\/p>\n

\u2014 FTX (@FTX_Official) October 17, 2023<\/a><\/p><\/blockquote>\n

Part of the amended plan consists of the \u201cshortfall claim,\u201d in which FTX debtors estimate that customers of FTX.com and FTX.US would collectively receive 90% of assets available for distribution. <\/p>\n

The shortfall claim is estimated to be approximately $8.9 billion for FTX.com and $166 million for FTX.US. If approved by the bankruptcy court, FTX expects these funds to be disbursed by the end of the second quarter of 2024.<\/p>\n

John J. Ray III, CEO and chief restructuring officer of FTX, was pleased<\/a> with the terms of the settlement:<\/p>\n

\u201cTogether, 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.\u201d<\/p><\/blockquote>\n

The amended plan involves FTX dividing the assets into three pools \u2014 assets segregated for the benefit of FTX.com customers, U.S. customers and a general pool of other assets. However, only the first two groups are included in the shortfall claim.<\/p>\n

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The Plan Term Sheet is a compromise between the Committee, the Debtors, the ad hoc customer committee and other representatives on a range of issues that balance the rights of customer and non-customer creditors across the U.S. and foreign debtors.<\/p>\n

\u2014 Official Committee of Unsecured Creditors of FTX (@FTX_Committee) October 17, 2023<\/a><\/p><\/blockquote>\n

However,\u00a0FTX debtors anticipate that customers of both exchanges\u00a0will not be paid in full<\/a>\u00a0and that FTX.com will likely see a greater percentage of losses.<\/p>\n

FTX customer clawbacks<\/h3>\n

Meanwhile, observers noted that a part of the proposed plan sees to it that customers who withdrew over $250,000 from the exchange within nine days of bankruptcy would have their claim reduced by 15% of the amount.<\/p>\n

However, claims under $250,000 wouldn\u2019t be subject to a reduction, FTX debtors explained.<\/p>\n

\u201cEligible customers that have a preference settlement amount of less than $250,000 during the nine-day period would be able to accept the settlement without any reduction of claim or payment.\u201d<\/p><\/blockquote>\n

Related: <\/em><\/strong>Caroline Ellison wanted to step down but feared a bank run on FTX<\/em><\/strong><\/a><\/p>\n

However, as part of the amended plan, FTX may exclude from the settlement any insiders, affiliates and customers who may have had knowledge of the commingling and misuse of customer deposits and corporate funds, it said.<\/p>\n

Former FTX CEO Sam Bankman-Fried is two weeks into his fraud trial<\/a> on matters relating to his involvement in FTX\u2019s collapse to bankruptcy<\/a> last November.<\/p>\n

Magazine: <\/em><\/strong>Deposit risk: What do crypto exchanges really do with your money?<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The customers of bankrupt crypto exchanges FTX and FTX.US could see over 90% of assets returned to them by the end of the second quarter of 2024 after a proposed settlement was reached between FTX creditors and debtors. On Oct. 17, FTX debtors said they reached a \u201cmajor milestone\u201d in their Chapter 11 case after […]<\/p>\n","protected":false},"author":2,"featured_media":175656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-175655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=175655"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175655\/revisions"}],"predecessor-version":[{"id":175658,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175655\/revisions\/175658"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/175656"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=175655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=175655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=175655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}