FTX creditors expected to pay full compensation, gave up restarting the exchange because they could not find a buyer
Written by: Nancy
Although there have been positive news about FTX's restart in the past few months, FTX has abandoned its restart plan due to a lack of buyers, but it is expected to repay creditors in full. Affected by this news, CoinGecko data shows that FTT fell rapidly after a brief rise, with a drop of more than 18.1% in the past 24 hours.
As early as June last year, FTX revealed that it had begun soliciting interested parties to restartexchange, and since announcing its intention to restart, FTX has received expressions of interest from more than 75 institutions, and was eventually narrowed down to three bidders for negotiation.
But according to FTX lawyer Andrew Dietderich at the latest court hearing, FTX does not plan to relaunch the platform. The companies the platform spent hundreds of millions of dollars to acquire proved to be of little value, and there were not many interested buyers. At the same time, although FTX still has valuable customer data and information that can be monetized, the bankruptcy team, despite their best efforts, was still unable to find people willing to invest the necessary funds to restart the offshore company.exchangeinvestors.
However, FTX expects to have sufficient funds to fully pay all approved customer and creditor claims. In fact, benefiting from the recovery of the crypto market, the value of assets held by FTX has also increased. Based on the value of the Top 10 assets previously announced by FTX, as of February 1, these recovered assets have exceeded US$7.83 billion. According to a previous report by Bloomberg, the four largest subsidiaries of FTX under the U.S. Bankruptcy Code, including FTX Trading Ltd. and Alameda Research LLC, almost doubled their cash reserves at the end of 2023, from approximately US$2.3 billion at the end of October. $4.4 billion. Recently, FTX has continued to sell off a large number of assets. For example, FTX sold more than two-thirds of GBTC shares, worth approximately US$1 billion.
At a subsequent hearing, the judge granted a motion by the FTX debtors to convert the digital asset claims into U.S. dollars. If approved by the bankruptcy court, the funds are expected to be disbursed by the end of the second quarter of 2024. However, as Kris Hansen, an attorney representing the FTX creditors committee, said at the hearing, full payment is based on the filing date value of these claims. Most of these claims were premised on currencies that had experienced substantial depreciation during the tumultuous period leading up to the filing date. In other words, all compensation is not equivalent to the current market value. In this regard, the court held that the debtor's method of estimating the claim was fair and reasonable based on the evidence and arguments presented in the documents and at the hearing. It is important to note that FTT holders will not be able to obtain any claims.
Separately, Dietderich said the repayment proceedings being considered by the U.S. Bankruptcy Court will require claimants to submit evidence of assets they held on FTX and subsequent losses, which will be reviewed by restructuring advisers to distinguish legitimate claims from unlawful ones. . Users and unsecured creditors who can prove their losses "will eventually be paid in full."
But at the same time, FTX lawyers also said that this is not a "guarantee", but a goal. To achieve such results, they also need to deal with a lot of work and risk.
The article comes from the Internet:FTX creditors expected to pay full compensation, gave up restarting the exchange because they could not find a buyer
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