FTX Bankruptcy to End and Creditors to Receive Billions of Dollars in Payments

Crypto News – Plans for FTX‘s restructuring are well underway, and the team now intends to end bankruptcy as soon as possible.

FTX Bankruptcy to End and Creditors to Receive Billions of Dollars in Payments

Significantly, FTX Trading Ltd. has disclosed its most recent proposal, which outlines measures to reimburse creditors and customers for billions of dollars. This action starts the last round of talks about how to settle the bankruptcy case involving the cryptocurrency company, which has been plagued by problems with fraud.

The reorganization plan does, however, leave open a number of important issues, including the procedure for valuing specific digital tokens, the projected returns for creditors, and the possibility of FTX‘s now-defunct cryptocurrency exchange returning to life.

The plan is expected to be further refined, and extra important features will probably be included before it is put to a vote by creditors later this year. Following the voting by creditors, US Bankruptcy Judge John Dorsey will be asked for his final approval. Prominent creditor and consumer groups in the Chapter 11 lawsuit have notably agreed upon the broad contours of the proposal.

About FTX’s Payment Strategy

Provided that a significant amount of the company’s cryptocurrency holdings are liquidated, the suggested distribution plan is intended to disburse billions of dollars in cash. There’s no doubt that interested parties and the larger cryptocurrency community will be closely following the proceedings in the bankruptcy case.

As previously mentioned, FTX has been observing potential buyers for the exchange. The pioneer of cryptocurrency exchanges, FTX Trading Ltd., is currently investigating post-bankruptcy tactics. The exchange’s outright sale or partnership formation are among the options disclosed by investment banker Kevin M. Cofsky, along with ongoing discussions with possible investors.