FTX Trading Ltd. unveiled its latest plan to return billions of dollars to customers and creditors, unveiling the final round of potential debate over how best to end the fraud-hit cryptocurrency firm’s bankruptcy case.
There are important questions left unanswered in the restructuring plan, including whether FTX will restart its defunct cryptocurrency exchange, how the company will estimate the value of some digital tokens, and how much return creditors can expect to receive.
Next year, the plan will go to creditors for a vote -- potentially adding some key details -- before going before U.S. Bankruptcy Judge John Dorsey for final approval. Major creditors and customers involved in the bankruptcy protection case have agreed to the broad outlines of the plan.
The compensation plan calls for billions of dollars in cash to be distributed to creditors after liquidating most of the company’s cryptocurrency holdings.
Last month, FTX founder Sam Bankman-Fried was convicted of orchestrating a massive fraud that led to the collapse of his FTX exchange.
The company filed for bankruptcy last year after Bankman-Fried agreed to hand over control of its empire to restructuring professionals. Since then, the advisers have been tracking the assets and trying to untangle the complex web of debt owed to various creditors, including clients who put cash and cryptocurrencies on trading platforms.