Embattled crypto exchange FTX has moved forward with plans to end its bankruptcy and make creditors whole again, but escalating legal fees have eaten into its pot.
On Dec. 18, it was reported that FTX had filed its latest proposal to return billions of dollars to its customers and creditors.
Moreover, the plan did not indicate whether the exchange would be restarted. It will be sent to creditors for a vote before being submitted to court for final approval.
The payout plan calls for billions of dollars to be distributed as cash after the firm liquidated a lot of its crypto holdings, according to Bloomberg.
According to the amended Chapter 11 plan of reorganization filed on Dec. 16, customer claims for crypto assets should be valued at the time of the exchange’s collapse in November 2022.
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