• FTX was revising its settlement proposal in response to U.S. Trustee objections.
• The revised proposal now involves including the U.S. Trustee as a noticed party and reducing the maximum settled claim value from $10 million to $7 million.
• The Official Committee of Unsecured Creditors and an ad hoc committee of international customers are supporting the settlement procedures to ensure fair proceedings for creditors.
FTX Overhauls Settlement Proposal
FTX was revising its settlement proposal as a response to U.S. Trustee objections, which led to the debtors addressing these concerns by including the U.S. Trustee as a noticed party and reducing the maximum settled claim value from $10 million to $7 million.
Objections Raised by US Trustee
The objection raised by the U.S. Trustee centered on the perceived high threshold of $10 million for a claim to be considered “small”, coupled with concerns regarding inadequate notice regarding claims nature, leading FTX debtors to revise their proposal and engage constructively with observations raised by the US trustee .
Creditor Committees Support Settlement Procedures
Two distinct creditor committees,the Official Committee of Unsecured Creditors and an ad hoc committee of international customers are supporting the settlement procedures, playing an important role in ensuring fair proceedings for creditors .
FTX Declared Bankruptcy
FTX , once one of the world’s largest digital assets exchanges, experienced financial difficulties that eventually led to its declaration of bankruptcy in May 2021 . As part of this process , FTX is taking steps towards resolution through a transparent and balanced creditor claims process .
Monthly Reports Detailing Executed Settlements
To enhance transparency throughout this process , FTX has committed itself towards filing monthly reports detailing executed settlements . This will involve resolving any objections raised through court orders before proceeding with claim process .