FTX Reaches Final Stage of Bankruptcy: Prepares to Pay Creditors in Cash
FTX nears end of bankruptcy, proposes plan to repay billions after fraud scandal, with major changes and creditor vote set for next year.
FTX Trading Ltd. A collapsed crypto exchange is reaching the final phase of its bankruptcy process and has proposed a plan to repay billions to its customers and creditors. This step is the final stage of a complex case caused by a big fraud scandal carried out by FTX’s former CEO.
The plan they proposed involves reorganizing the company's assets and finances to pay off debts, but the people are still curious to know what future awaits FTX’s crypto exchange and how to value digital tokens while creditors are still waiting to know how much they will get back.
After concluding on other details, the creditors will vote on the proposed plan next year, before seeking final approval from a bankruptcy judge. The plan has some support from major creditor and customer groups.
FTX holdings will be liquidating the company’s cryptocurrency holdings, since the proposal includes an intention to distribute billions in cash to the creditors, This marks a major change in FTX’s strategy, given the large amount of assets involved.
The founder of FTX, Sam Bankman-Fried, is facing justice for causing the company’s collapse with his fraudulent acts. Ever since the collapse, professionals have been working to find assets and sort out debts to various creditors, including those who invested cash and crypto in the exchange.
As FTX’s bankruptcy plan unfolds, it could serve as an example to the crypto industry and regulators across the globe.
