⚠️The FTX Debtors are providing an update on the proposed settlement with the preferred shareholders. FTX will be returning 100% of the assets under FTX’s control to creditors in the Ch. 11 plan. The DOJ is in control of the distribution of assets forfeited through the criminal cases and has made clear that under criminal law the preferred shareholders are victims alongside creditors.
FTX and the preferred shareholders have competing claims to the forfeiture proceeds. While the DOJ will decide how to reconcile these competing claims, the settlement, if acceptable to the DOJ, would resolve them in a way that FTX believes is fair to both sides and avoids a protracted dispute. In this novel settlement, FTX is asking the DOJ to agree to a centralized distribution process through the FTX Ch. 11 plan, accelerating distributions to creditors and avoiding substantial, redundant expenses.
Additional information regarding the DOJ forfeiture process and related assets can be found in the disclosure statement filed on June 27, 2024.
