FTX creditors unimpressed with exchange’s bankruptcy exit plan
A body representing FTX customers said it is “extremely disappointed” by the exchange’s draft bankruptcy exit plan and claims it was ignored by FTX’s restructuring team.
In a July 31 court filing, FTX’s Official Committee of Unsecured Creditors (UCC) said despite its repeated requests and previous promises from the team, it “did not have a single call or meeting” with FTX to discuss its draft Chapter 11 plan.
The plan outlines and categorizes customer claims into classes and creates a path forward for FTX to re-launch as an offshore exchange. The UCC warned it would put forward its own plan for FTX customers to vote on if it continued to be ignored.
The UCC took issue with what it considered to be a late filing of the plan that created “the appearance of progress.” It explained the plan was one-sided and largely ignored suggestions the UCC raised during discussions.
“Put simply, the Debtors chose to publicly file their ideas for a plan.”
Another concern was the plan does not appoint someone with relevant crypto experience to run a potentially-rebooted FTX.
The plan should also create a regulatory-compliant recovery token and allocate value to customers most affected by FTX’s collapse in order to gain support from the “millions of customers and creditors whose votes are necessary to confirm a plan,” it said.
Additionally, the UCC claimed the current plan will cause more costs and delays. Ultimately, it asserted that it would have no choice but to put forward its own plan “for which customers and creditors will actually vote in favor.”
Related: Judge allows Terraform Labs to subpoena FTX
It was, however, appreciative that the restructuring team signaled a willingness to amend the plan to include the UCC’s recommendations, saying that negotiations will start “very soon.”
The Debtors filed a template for a plan of reorganization last night. Business level negotiations between the Committee and the Debtors over the terms of the plan have not happened yet, but will start very soon.
— Official Committee of Unsecured Creditors of FTX (@FTX_Committee) August 1, 2023
“This will take willingness on the part of the Debtors to listen and engage and not attempt to substitute their judgment for that of the parties who truly know and understand the cryptocurrency markets,” it added.
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The Home Office has lost a Court of Appeal bid to challenge a High Court ruling granting an Eritrean man a temporary block on being deported to France.
The ruling will be a blow to ministers, who had been hoping to make headway with their “one in, one out” migrant returns deal with France.
Politics latest: Don’t let Trump’s America become Farage’s Britain, Ed Davey says
Under the deal, the UK can send back any migrant who crosses the Channel illegally in return for accepting the same number of migrants in France who have a valid asylum claim here.
However, only four people have been deported under the scheme so far, including one Afghan individual who was deported to France this afternoon.
The Eritrean man was granted a temporary block on his removal after he claimed he had been a victim of modern slavery.
The government has said up to 50 people a week could be deported under the scheme initially, but it believes numbers would grow and eventually act as a deterrent to those considering making the dangerous journey across the Channel.
Last Friday saw more than 1,000 people cross the Channel to the UK in small boats – the day after the first migrant was deported under the “one in, one out” deal.
The latest Home Office figures show 1,072 people made the journey in 13 boats – averaging more than 82 people per boat. It means the number of migrants arriving in the UK after crossing the English Channel has topped 30,000 for the year so far.
Migrants arrive at Dover. Pic: PA
Shabana Mahmood, who was promoted to home secretary in the prime minister’s reshuffle earlier this month, has accused migrants who try to block their deportation of making a “mockery” of the UK’s modern slavery laws.
She has vowed to do “whatever it takes” to end crossings – but the Conservatives have branded the “one in, one out” deal with France “meagre” and have called for their Rwanda policy to be reinstated.
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Chris Philp, the shadow home secretary, said: “Yet again the courts have stepped in to block a deportation, proving what we warned from the start, unless you tackle the lawfare strangling Britain’s borders, nothing will change.
“This is nothing but a gimmick. Even if by some miracle it worked, it would still be no deterrent, as 94 per cent of arrivals would still stay.”
Meanwhile, Reform UK has promised to crack down on both legal and illegal migration.
Last month, party leader Nigel Farage outlined plans to deport hundreds of thousands of illegal migrants in the first parliament of a potential Reform UK government.
On Monday, he announced fresh policies to reduce legal migration, saying his party would ban access to benefits to migrants and get rid of indefinite leave to remain – the term used to describe the right to settle in the UK, with access to benefits, after five years.
Sir Ed Davey has used his keynote speech to warn that the UK has a choice between “the real change people crave”, and a Reform government turning Britain into “Trump’s America”.
The leader of the Liberal Democrats has sought to paint a picture of the country at a crossroads, and has heaped accusations on Nigel Farage – suggesting he would reverse gun laws and scrap the NHS.
Sir Ed has spent the past few days of the party’s conference in Bournemouth attacking tech titan Elon Musk and the Reform UK leader.
But now he has used his speech to try and tie the ideas of Mr Farage and President Trump together in voters’ minds.
Liberal Democrat leader Sir Ed Davey delivering his speech during the autumn conference.
Pic: PA
He said: “Imagine living in the Trump-inspired country Farage wants us to become.
“Where there’s no NHS, so patients are hit with crippling insurance bills. Or denied healthcare altogether.
“Where we pay Putin for expensive fossil fuels and destroy our beautiful countryside with fracking – while climate change rages on.
“Where gun laws are rolled back, so schools have to teach our children what to do in case of a mass shooting. Where social media barons are free to poison young minds with impunity.”
Sir Ed called Nigel Farage a “hypocrite” who should “apologise” for his record on tackling immigration.
Sir Ed also accused Mr Farage’s party of allowing “the government [to] trample on our basic rights and freedoms” by saying it will pull the UK out of the European Convention on Human Rights (ECHR) – and of giving “tacit support” to racism and misogyny.
The Lib Dem claimed a Reform government would be “where everything is in a constant state of chaos”.
Under Mr Farage, those with mental health problems would be told they are “making it up”, and children with special educational needs that they have “been wrongly diagnosed”, Sir Ed said.
“That is Trump’s America. Don’t let it become Farage’s Britain,” he warned.
But Sir Ed has not only attacked Reform UK for what could happen if they came to power, but also for the “crisis”, which he accused Mr Farage of having already caused.
He pointed to the Reform leader’s support for leaving the EU, which led to 27 existing migrant return agreements being abolished.
Sir Ed said: “He caused this [small boats] crisis, and he should apologise.
“And look at this hypocrite’s big announcement on deportation last month.
“Look at what his plan really means. Sending men, women and children who have fled the Taliban back to Afghanistan to be murdered by them. And even paying the Taliban to do it.
“That isn’t patriotic. That isn’t British. That isn’t who we are.
“So much that is broken in our country today is broken thanks to Nigel Farage. And now he wants to break it even more. Unless we stop him.”
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Sky News political editor Beth Rigby analyses her interview with the Lib Dem leader.
In fact, Sir Ed directly mentioned Mr Farage by name in his speech 30 times, a point made by our political editor Beth Rigby, who has argued that the Reform UK leader is living ‘rent-free’ in the Lib Dem’s head.
Farage is allied with Musk, Putin and Trump, Davey claims
But Sir Ed also had tech billionaire, Elon Musk, in his sights once again.
The Lib Dem leader repeated his allegation that the X owner was “inciting far-right violence” with his speech at the “Unite the Kingdom” rally last weekend.
He called for the UK to stand up to Mr Musk, and for the government to “properly enforce our laws so he can’t get away with inflicting harm on our kids”.
‘Trump’s America’ was a key line of attack for Sir Ed, who said a new coalition should be established to fight the president’s tariffs.
Pic: Reuters
“Nigel Farage is on the side of Elon Musk, Vladimir Putin and Donald Trump,” he alleged. “Liberal Democrats are on the side of the British people.”
Sky News has approached X and Elon Musk for comment about these comments that he has made previously, but as of publication has received no response.
X maintains it has “zero tolerance for child sexual abuse material” and claims tackling those who exploit children is a “top priority”.
Read more:
UK faces ‘crisis’ of child-on-child sexual abuse
Trump is ‘the biggest threat to the fight against cancer’
Another person to face Sir Ed’s ire was President Trump, who the leader accused of becoming “the biggest threat to the fight against cancer”.
“The US is by far the world’s biggest funder of cancer research – mostly through its National Cancer Institute,” the leader said.
“But since Donald Trump returned to the White House, he has cancelled hundreds of grants for cancer research projects.
“He’s slashing billions of dollars from the National Cancer Institute’s budget.”
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Sir Ed Davey said he believed Nigel Farage was seeking to mimic the politics of US President Donald Trump.
Sir Ed appealed for scientists who have had projects cancelled or funding cut to “come here and finish it in the UK”.
He said a dedicated scheme should be established to allow them to move to work at British research institutions, without having to pay large visa fees.
He also used his speech to pledge to boost healthcare and cancer research more widely.
He told party members: “The UK should step up and say: if Trump won’t back this research, we will.
“We’ll boost funding for cancer research in the UK. We’ll rebuild a National Cancer Research Institute, after it was closed under the Conservatives, to coordinate research and drive it forward.
“We’ll pass a Cancer Survival Research Act to ensure funding for research into the deadliest cancers.”
He also announced a “cast-iron guarantee” that each patient in the UK diagnosed with cancer will start treatment within two months under the Liberal Democrats.
Sir Ed also:
- Urged the government to create a new “coalition of the willing” to take on Trump’s tariffs
- Said he would like to win more seats than the Conservatives at the next general election, for the first time since 1910
- Appealed to traditional Tory voters and urged them to vote for him “to oppose this failing Labour government”
SEC Chair Paul Atkins said he will push an “innovation exemption” by year’s end to let crypto companies roll out products without outdated regulatory hurdles.
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