The customers of bankrupt crypto exchanges FTX and FTX.US could see over 90% of assets returned to them by the end of the second quarter of 2024 after a proposed settlement was reached between FTX creditors and debtors.
On Oct. 17, FTX debtors said they reached a “major milestone” in their Chapter 11 case after “extensive discussions” with the unsecured creditors’ committee, a committee of non-United States customers, and class action plaintiffs regarding customer property disputes.
FTX debtors filed a notice of the proposed settlement with a Delaware-based U.S. bankruptcy court on Oct. 16 (for information purposes). However, they need to submit an official filing by Dec. 16 seeking the court’s approval.
(1/4) The FTX Debtors have announced another major milestone in their chapter 11 cases.
Part of the amended plan consists of the “shortfall claim,” in which FTX debtors estimate that customers of FTX.com and FTX.US would collectively receive 90% of assets available for distribution.
The shortfall claim is estimated to be approximately $8.9 billion for FTX.com and $166 million for FTX.US. If approved by the bankruptcy court, FTX expects these funds to be disbursed by the end of the second quarter of 2024.
John J. Ray III, CEO and chief restructuring officer of FTX, was pleased with the terms of the settlement:
“Together, starting in the most challenging financial disaster I have seen, the debtors and their creditors have created enormous value from a situation that easily could have been a near-total loss for customers.”
The amended plan involves FTX dividing the assets into three pools — assets segregated for the benefit of FTX.com customers, U.S. customers and a general pool of other assets. However, only the first two groups are included in the shortfall claim.
The Plan Term Sheet is a compromise between the Committee, the Debtors, the ad hoc customer committee and other representatives on a range of issues that balance the rights of customer and non-customer creditors across the U.S. and foreign debtors.
— Official Committee of Unsecured Creditors of FTX (@FTX_Committee) October 17, 2023
However, FTX debtors anticipate that customers of both exchanges will not be paid in full and that FTX.com will likely see a greater percentage of losses.
FTX customer clawbacks
Meanwhile, observers noted that a part of the proposed plan sees to it that customers who withdrew over $250,000 from the exchange within nine days of bankruptcy would have their claim reduced by 15% of the amount.
However, claims under $250,000 wouldn’t be subject to a reduction, FTX debtors explained.
“Eligible customers that have a preference settlement amount of less than $250,000 during the nine-day period would be able to accept the settlement without any reduction of claim or payment.”
However, as part of the amended plan, FTX may exclude from the settlement any insiders, affiliates and customers who may have had knowledge of the commingling and misuse of customer deposits and corporate funds, it said.
In the marginal seat of North East Fife in this election, it is not a straight fight between red and blue, but shades of yellow too.
In 2017, the SNP won here by just two votes ahead of the Scottish Liberal Democrats. That astonishing two-vote tipping point made it the UK’s most marginal seat at the time.
But in 2019, the Lib Dems won it from the SNP, giving the party one of its four MPs in Scotland.
Today, Lib Dem posters line the winding road that takes you to Anstruther’s waterfront.
It’s a charming fishing village and overlooking the harbour are quaint restaurants and gift shops – handmade soap, whisky and fresh fish – it’s all on offer.
With this allure comes a melee of tourists who join us as we hop to each business, talking to them about how the campaigns have resonated with them here.
“When it’s very, very quiet, you’re talking maybe four months of the year with maybe a six or seven hours a day, that you’re not doing very much. And you can’t really drag people in the door.
“We need to bring people in. The villages needs money. You know, that’s that’s where the economy lies, I think, in the future.”
And when at the ballot box, Tom says it’ll be his shop at the forefront of his mind.
“I look for somebody that’s going to help businesses like myself, small businesses, and keep the high streets going, get people out,” he says.
This is one of the constituencies to have had its boundary lines redrawn.
Changes have now led to areas with higher levels of deprivation being added to the North East Fife seat.
Away from the picturesque coastline, further inland there are signs of a lack of investment and care.
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Chris adds: “There’s just so many promises and you think, you’ve had your time, can someone else do more for the country. We’re a very tourist-heavy area and we can’t afford to lose that. If Scotland loses its attraction, you know, we failed.”
The national narrative and the polls are having an impact on how he is feeling.
“I never thought I’d say it, but Labour are coming to mind, I think they’re going to do more for the country than the others.
“But who do you believe? There’s always promises. And when it comes down to how many are delivered, usually very few.”
We’ve met those across this constituency who intend to back Reform, SNP and Labour throughout the day.
A sign that even the most seemingly straightforward of seats is all to play for.
The list of candidates standing in North East Fife are:
Wes Streeting has urged voters not to hand “the matches back to the arsonists to finish the job” as he warned against complacency over polls predicting a Labour landslide.
Speaking to Sky News’s Sunday Morning With Trevor Phillips, the shadow health secretary stressed the choice at the election as he branded the Tory manifesto “Liz Truss’s budget on steroids” and raised the prospect of “a nightmare on Downing Street” if the governing party was returned.
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Conservatives: We’re fighting for every vote
Mr Streeting made his comments as fresh polls signalled a further grim outlook for Prime Minister Rishi Sunak, with one indicating the Conservatives on course to pick up just 72 seats.
Meanwhile, cabinet minister Mark Harper insisted the Tories were fighting for every vote, but repeated his party’s warning that a vote for Reform UK would give Labour a large majority and “a blank cheque” in office.
Mr Streeting said: “I just warn people, against this backdrop of breathtaking complacency in the media about the opinion polls, do not give the matches back to the arsonist to finish the job.”
He added: “Do people want to see Liz Truss’s mini budget on steroids, which is the Conservative manifesto, being delivered if there’s a nightmare on Downing Street on 5 July or do they want to see a stable economy with economic growth, shared prosperity, enable us to invest in our public services without clobbering working people with taxes, that’s the choice at this election.”
Despite the polls, Mr Harper told Phillips: “I’m still very much up for this fight.
“The Conservative Party across the country, led by the prime minister, is fighting for every vote.”
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He added: “But the polls do tell us one thing. They do show people that if people don’t vote Conservative and some of the people vote for the smaller parties, and Labour does end up with a very large majority, they’re going to have a blank check.
“They are trying very hard in this campaign not to spell out how they’re going to pay for any of their promises. We know there is a black hole. We can have a debate about how big it is.
“We’ve said it’s going to be £2,000 for every family in the next over the parliament, but there’s definitely a black hole.
“We’ve set out the taxes that they might have to raise and they haven’t ruled them out.”
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Mr Harper went on: “I’d say very simply to those voters who are thinking about voting Reform who have voted Conservative – they want to see lower taxes, they want to see migration under control, if they vote Reform they’re going to get a Labour government with a large majority and it’s going to deliver the opposite of what they want.”
Mr Harper also insisted the election was “not about the past”.
He said: “Elections are about the future. They’re about the offer in front of us.”
In his interview with Phillips, Mr Streeting also indicated there could be greater spending increases for the NHS than committed to in the Labour manifesto, but stressed this could happen “only if the conditions allow”.
He was responding to analysis by the Nuffield Trust thinktank that suggested both Labour and Tory pledges on the NHS would leave the health service with lower annual funding increases than during the austerity era.
Seizing on this, a Tory spokesman said: “Labour’s manifesto is just window dressing for the election campaign and they are planning to spend and tax more than they are telling the public.”
The billionaire investor also intimated that any political aspirations Gensler had would amount to nothing due to the SEC chairman’s stance against cryptocurrency