Bankrupt Crypto Exchange FTX Modifies Settlement Motion Following U.S. Trustee’s Objection
Crypto News – In response to objections raised by the U.S. Trustee in a prior motion, the bankrupt cryptocurrency exchange FTX has refined its settlement proposal. This adjustment was outlined in a court filing on Sunday.
While expressing discontent with the U.S. Trustee‘s role as the “sole objector to the Motion,” asserting an unnecessary intrusion into an already well-protected routine settlement process, FTX’s debtors have responded with proposed amendments aimed at addressing the concerns raised.
Under the revised proposal, the debtors have introduced the U.S. Trustee as a noticed party and scaled down the upper limit for claims subject to the settlement procedures. The maximum amount eligible for settlement has been reduced from the initial $10 million to $7 million. Additionally, the debtors commit to submitting monthly reports detailing executed settlements. Any objections arising from these “noticed parties” will be required to undergo resolution or settlement through a court order before the claims process can proceed.
The two key creditor committees involved are the Official Committee of Unsecured Creditors and the ad hoc committee of international customers.
The U.S. Trustee’s prior opposition to the motion stemmed from their belief that $10 million exceeded the threshold for a “small” claim, with inadequate clarification regarding the nature of the claims provided.
FTX, once the world’s third-largest digital assets exchange, declared bankruptcy in November of the preceding year.
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