The estate of the collapsed cryptocurrency platform FTX has formally submitted a reorganization plan to a Delaware court, marking a crucial step towards the company’s exit from bankruptcy. FTX, founded by Sam Bankman-Fried, faced a significant downturn in November 2022, particularly following reports on the financial instability of its trading unit, Alameda. This latest bankruptcy plan, which was expected by December 16 after earlier informal proposals, outlines the estate’s strategy to return a substantial portion—up to 90%—of the recovered funds to creditors.
The newly presented proposal classifies creditor and customer claims based on the estate’s intended priority. The valuation of these claims will be determined using asset prices as of the date when FTX filed for bankruptcy. Emphasizing its commitment to the equitable distribution of value, the estate stated that the plan is designed to “maximize and efficiently distribute value to all creditors.”
Given the nature of high-profile crypto bankruptcy cases, the reorganization plan is likely to encounter opposition from various creditor groups until it secures approval from the court. A scheduled hearing for the plan’s review is anticipated in 2024.
