FTX Files Reorganization Plan to End Bankruptcy
Summary
The estate of defunct cryptocurrency enterprise FTX has submitted a proposal to conclude its bankruptcy case to a Delaware court. FTX, founded by Sam Bankman-Fried, collapsed in November 2022 following exposure of its trading unit Alameda's shaky balance sheet. The bankruptcy conclusion plan categorizes customer and creditor claims according to the priority assigned by the estate and the value of claims will be calculated based on asset pricing at the time the company declared bankruptcy. The estate intends to maximise and efficiently distribute value to all creditors through this plan. The proposal may face objections from various creditor groups until court approval. A hearing date will be set in 2024.
