FTX is working on a restructuring plan that is moving forward quickly under its new management, with the aim of ending the bankruptcy process. The team is in the final negotiations to repay billions of dollars to affected customers and creditors.
The crypto world is closely following the developments of FTX, whose bankruptcy in 2022 shook the market. FTX has presented its latest proposal, which includes a plan to repay billions of dollars to customers and creditors. This indicates that the discussions regarding the resolution of the bankruptcy case of the crypto company, which has been shadowed by fraud issues, have reached the final stage.
Improvements in the restructuring plan scheduled for creditor voting and the expectation of adding more significant details to the plan are anticipated. Following the creditor vote, the plan will seek final approval from U.S. Bankruptcy Judge John Dorsey. Notably, large creditor and customer groups involved in the Chapter 11 bankruptcy case have reached a consensus on the general outline of the restructuring plan.
Developments in the bankruptcy case are being closely monitored by stakeholders and the crypto world in general, and whether or not FTX will reopen is one of the most intriguing questions. Last month, it was revealed that FTX’s management held various discussions with bidders to reopen the crypto exchange and evaluated various strategies that could be followed after bankruptcy.
Sam Bankman-Fried, the founder and former CEO of FTX, was found guilty last month of managing a significant fraud scheme that led to the bankruptcy of the crypto exchange. It is known that the company began the bankruptcy process last year after Bankman-Fried handed over his duties to restructuring experts.