FTX Releases Update on Proposed Settlement for Preferred Shareholders, Emphasizing that Preferred Shareholders Are Victims Just Like Creditors

PANews reported on October 1 that FTX Official disclosed on the X platform that FTX creditors are providing updates on the proposed settlement with preferred shareholders. FTX will return 100% of the assets under its control to creditors under the Chapter 11 plan. The Department of Justice is responsible for controlling the distribution of assets confiscated through criminal cases and has made it clear that preferred shareholders are victims just like creditors under the criminal law.

FTX and preferred shareholders have competing claims for forfeiture proceeds. While the DOJ will determine how to reconcile these competing claims, FTX believes the settlement, if accepted by the DOJ, is fair to both parties and avoids a protracted dispute. In this settlement, FTX is asking the DOJ to agree to a centralized distribution process through the FTX Ch. 11 Plan, expediting distributions to creditors and avoiding significant redundant expenses.