{"id":13306,"date":"2024-05-08T10:12:49","date_gmt":"2024-05-08T07:12:49","guid":{"rendered":"https:\/\/forklog.com\/en\/ftx-proposes-118-return-to-creditors\/"},"modified":"2024-05-08T10:12:49","modified_gmt":"2024-05-08T07:12:49","slug":"ftx-proposes-118-return-to-creditors","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ftx-proposes-118-return-to-creditors\/","title":{"rendered":"FTX Proposes 118% Return to Creditors"},"content":{"rendered":"

The collapsed exchange FTX has proposed<\/a> a new compensation plan, under which 98% of creditors will receive at least 118% of their claims within 60 days of court approval.<\/p>\n

The remaining platform clients will receive 100% reimbursement of funds. <\/p>\n

\n

\u201cThe plan will allow disputes with public and private stakeholders to be resolved without costly and protracted litigation,\u201d the press release states.<\/p>\n<\/blockquote>\n

FTX forecasts the total value of compensations to range from $14.5 billion to $16.3 billion. This sum includes assets under the control of the exchange itself and its liquidators. <\/p>\n

The company was able to secure such a volume of funds through the realization of \u201can extremely diverse set of cryptocurrencies, most of which were proprietary investments by Alameda or FTX Ventures.\u201d<\/p>\n

In late April, FTX conducted<\/a> a sale of Solana below market price. The company sold 1.8 million SOL at a rate of about $100. <\/p>\n

Following the previous auction, the exchange’s administrators sold<\/a> coins worth ~$1.9 billion at a 62% discount (25-30 million SOL at $64), causing outrage among creditors.<\/p>\n

The plan provides for full payment to all non-government creditors based on the value of their claims as determined by the court, as well as a subordination agreement with government creditors, which will allow debt to be paid at a rate of 9%. <\/p>\n

FTX’s proposal includes several agreements and deals, including with the US Internal Revenue Service, the Department of Justice, the CFTC<\/span>, and other regulators. <\/p>\n

Hearings to discuss the plan are scheduled for June.<\/p>\n

In March, FTX founder Sam Bankman-Fried was sentenced<\/a> to 25 years in prison. His lawyers have appealed<\/a> the decision.<\/p>\n","protected":false},"excerpt":{"rendered":"

The collapsed exchange FTX has proposed a new compensation plan, under which 98% of creditors will receive at least 118% of their claims within 60 days of court approval. The remaining platform clients will receive 100% reimbursement of funds. \u201cThe plan will allow disputes with public and private stakeholders to be resolved without costly and […]<\/p>\n","protected":false},"author":1,"featured_media":13305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1309,1236],"class_list":["post-13306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-compensation","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=13306"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13306\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/13305"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=13306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=13306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=13306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}