With the trial of Sam Bankman-Fried in the spotlight last month it is easy to forget that there is still the massive FTX bankruptcy that has to be sorted out.
The next step in that process has now been revealed in the form of a proposal. At this stage, it is just a proposal that must be approved by creditors before it can go to the bankruptcy judge. But the major creditor and consumer groups have agreed to the plan outline.
It calls for billions of dollars to be distributed as cash as the firm’s crypto holdings have been liquidated.
Since entering bankruptcy just over a year ago, investigators have been tracking down assets with a great deal of success.
While creditors will likely not be made completely whole there will be substantial repayments made. Then the question remains as to whether FTX continues as a reborn crypto platform…
FTX Trading Ltd. unveiled its latest proposal for returning billions of dollars to customers and creditors, kicking off a final round of potential squabbles about how best to end the bankruptcy case of the fraud-tainted crypto firm.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.