Crypto News– The cryptocurrency exchange has filed crucial updates pertaining to its ongoing bankruptcy proceedings, encompassing a plea for the implementation of a claims resolution process aimed at addressing the aftermath of the exchange’s collapse.
FTX Bankruptcy Hearing Scheduled for This Wednesday; FTT Price Soars by Over 5%
The submitted agenda encompasses 15 items, with nine of them already addressed and resolved through a court order issued on August 18. As a result, these items are deemed non-essential for the upcoming hearing. Consequently, six pivotal subjects remain to be addressed during the hearing, including a proposed settlement procedure and the latest case status.
The hearing will delve into various dimensions of FTX’s Chapter 11 bankruptcy case, which was instigated on November 11, 2022, subsequent to the significant downfall of the exchange. Allegations of fraudulent activities and improper utilization of customer funds have been directed toward the exchange, its affiliated entities, and its founder, Sam Bankman-Fried.
The agenda encompasses updates related to the bankruptcy case, a motion to formalize protocols for resolving litigation claims linked to the exchange’s demise, and updates on the ongoing legal actions against insiders, including Bankman-Fried. Notably, FTX and Genesis previously reached an agreement to settle claims associated with both entities’ concurrent bankruptcies. This settlement stipulated that Genesis would disburse $175 million to FTX’s trading arm, Alameda Research, while simultaneously renouncing all claims against the exchange’s assets.
FTX has now revised its motion, seeking the bankruptcy court’s endorsement for streamlined mechanisms aimed at resolving minor claims against the cryptocurrency exchange while operating under the umbrella of bankruptcy protection.
The initial motion sought to settle claims of up to $10 million. However, it encountered opposition from the U.S. Trustee, who argued that the sum was excessive and lacked adequate creditor oversight.