{"id":269518,"date":"2024-03-22T06:13:34","date_gmt":"2024-03-22T00:43:34","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=269518"},"modified":"2024-03-22T06:13:34","modified_gmt":"2024-03-22T00:43:34","slug":"ftx-estate-anticipates-cut-in-us-claims-to-3b-5b-amid-bankruptcy-crypto-news-2","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ftx-estate-anticipates-cut-in-us-claims-to-3b-5b-amid-bankruptcy-crypto-news-2\/","title":{"rendered":"FTX Estate Anticipates Cut in US Claims to $3B-$5B Amid Bankruptcy – Crypto News"},"content":{"rendered":"

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In a court filing, the bankrupt cryptocurrency exchange <\/span>FTX<\/span><\/a> indicated that claims by the U.S. government could total between $3 billion and $5 billion. This update came from documents submitted to the United States District Court for the Southern District of New York. The filing highlights ongoing negotiations with authorities, suggesting the final figure remains subject to change. FTX\u2019s approach aims to manage government and tax claims efficiently, ensuring a streamlined process for asset distribution.<\/span><\/p>\n

The court document focuses on the topmost priorities during a Chapter 11 bankruptcy proceedings. The organization\u2019s preliminary declaration declares that it will address the needs of the FTX customers and <\/span>Alameda Research<\/span><\/a> lenders, paying off administrative expenses and government and tax claims afterward. This structured method reinforces the estate\u2019s mission of being to the point and settling its priorities with the stakeholders.<\/span><\/p>\n

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FTX Plans Full SDNY Proceeds for Customers<\/strong><\/h2>\n

The estate specifies the allocation of 100% of the SDNY Remission Proceeds to FTX.com creditors and Alameda lenders. This treatment calls for resolving with entities such as <\/span>BlockFi<\/span><\/a>, which reinforces the estate focus on first compensating customers and lenders.<\/span><\/p>\n

Following the deduction of administrative expenses and other non-governmental creditors\u2019 claims, the balance of assets will be paid up to a sum of 25 percent of the main value in the U.S. Federal income tax claims. The balance of the funds will be directed towards the Civil Remission Fund, which is intended for creditors who observed an increase in the value of their virtual currency assets from when they filed for bankruptcy.<\/span><\/p>\n

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This distribution strategy symbolizes the estate\u2019s attempt to harmonize the interests of all the parties involved. FTX gives preference to customers and lenders to show FTX\u2019s commitment to mitigating the effects of their bankruptcy. Therefore, the Civil Remission Fund has also been established to counter the volatility of crypto assets by providing an avenue of recovery for just awards.<\/span><\/p>\n

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John J. Ray III Challenges Sam Bankman-Fried\u2019s Claims<\/strong><\/h2>\n

As FTX navigates its bankruptcy proceedings, it has reported significant progress in asset recovery. A filing from September 2023 indicated that the <\/span>FTX estate<\/span><\/a> had recovered approximately $7 billion in assets, a figure likely enhanced by the recent uptrend in cryptocurrency markets. This recovery is critical for the estate\u2019s ability to meet its proposed distribution plan and fulfill its obligations to stakeholders.<\/span><\/p>\n

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The legal backdrop for FTX\u2019s bankruptcy includes the conviction of its former CEO, Sam Bankman-Fried, for defrauding users and investors. In contrast, current CEO John J. Ray III has criticized<\/span> Sam Bankman-Fried<\/span><\/a>\u2018s assertions regarding customer harm, further highlighting the complexities surrounding FTX\u2019s downfall and ongoing recovery efforts.<\/span><\/p>\n

Read Also: <\/b>Estonian Government Approves Bill for Crypto Regulation<\/span><\/a><\/p>\n

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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In a court filing, the bankrupt cryptocurrency exchange FTX indicated that claims by the U.S. government could total between $3 billion and $5 billion. This update came from documents submitted to the United States District Court for the Southern District of New York. The filing highlights ongoing negotiations with authorities, suggesting the final figure remains […]<\/p>\n","protected":false},"author":2,"featured_media":162582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-269518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/269518","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=269518"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/269518\/revisions"}],"predecessor-version":[{"id":269523,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/269518\/revisions\/269523"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/162582"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=269518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=269518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=269518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}