FTX debtors and liquidators reach ‘novel and mutually-beneficial’ settlement
The proposed settlement is still subject to approval by U.S. Bankruptcy Court for the District of Delaware and the Supreme Court of the Bahamas.
Debtors for defunct cryptocurrency exchange FTX have announced a global settlement with the Joint Official Liquidators for the firm’s Bahamian arm as part of bankruptcy proceedings.
In a Dec. 19 announcement, FTX debtors said they planned to pool assets with FTX Digital Markets as part of efforts to distribute funds to users of the defunct crypto exchange. The firms said the settlement was a “novel and mutually-beneficial solution” based on cross-border legal issues related to the collapse of FTX in November 2022.
According to the terms of the proposed settlement — subject to approval by U.S. Bankruptcy Court for the District of Delaware and the Supreme Court of the Bahamas — all FTX users who don’t otherwise have claims pending with the court will be paid in U.S. dollars for losses in cash or digital assets, except nonfungible tokens (NFTs). Eligible users with claims can vote on the reimbursement plan in the second quarter of 2024.
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