The estate of the defunct cryptocurrency giant, FTX, has lodged a revised proposal aimed at settling its bankruptcy woes with a Delaware court, as revealed in a filing made public on Saturday according coindesk.
Following the staggering implosion of the exchange founded by Sam Bankman-Fried back in November 2022, precipitated by CoinDesk’s expose on Alameda, the firm’s shaky trading unit, the awaited bankruptcy plan has finally surfaced, meeting the anticipated deadline of Dec. 16. This plan follows earlier informal propositions, some of which outlined intentions to reimburse creditors with as much as 90% of their initial funds.
In this freshly minted proposal, the estate has strategized the categorization of creditor and customer claims based on the precedence they are set to receive. The valuation of these claims will be pegged to asset prices as of the company’s filing for bankruptcy. Emphasizing its intent to optimize the distribution of assets, the estate clarified that the plan is meticulously crafted to “maximize and efficiently distribute value to all creditors.”
Yet, akin to similar high-profile crypto insolvencies, the proposal is likely to encounter resistance from diverse creditor factions until it garners the court’s stamp of approval. The anticipated timeline for a hearing on this matter has been earmarked for 2024.
