According to BlockBeats, on October 1, according to an official FTX statement, FTX creditors provided an update on the proposed settlement with preferred shareholders. In the Ch. 11 bankruptcy reorganization plan, FTX will return 100% of the assets under its control to creditors. The judiciary has obtained control over the distribution of assets confiscated in criminal cases and made it clear that under criminal law, preferred shareholders and creditors are victims.
FTX and preferred shareholders have competing claims to the forfeiture proceeds. While the DOJ will determine how to reconcile these competing claims, the Settlement, if acceptable to the DOJ, will resolve them in a manner that FTX believes is fair to both parties and avoids a protracted dispute. In this settlement, FTX is requesting that the DOJ agree to a centralized distribution process through the FTX Ch. 11 bankruptcy plan of reorganization, expediting distributions to creditors and avoiding substantial and unnecessary expense. For more information on the DOJ’s forfeiture proceedings and related assets, please see the Disclosure Statement filed on June 27, 2024.
BlockBeats previously reported that FTX will return $11-16 billion to creditors in the fourth quarter of 2024. Although the exact date is still unclear, FTX proposed that the distribution will be made within 60 days after the restructuring plan takes effect. Currently, the next hearing on the restructuring plan is scheduled for October 7. If approved, FTX will have 60 days to distribute assets to creditors.
