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.
After days of furore directed at Rishi Sunak for the election betting scandal, now a Labour candidate is under investigation by the Gambling Commission for his own betting activity – and is immediately suspended.
Is this an equaliser in one of the grubbiest electoral sagas of recent elections? Quite possibly not.
There is no doubting the utter dismay in Labour HQ at the revelation that they too have a candidate caught up in the betting scandal.
However, if this scenario is as presented, it is hard to see an allegation being mounted that he had insider intelligence on the race – unless it can be proved he was deliberately setting out to lose.
An under-pressure Gambling Commission will investigate every candidate’s name on the spreadsheet from gambling companies of those who placed bets – but it is unclear from available facts where this will go.
The Tory betting saga, however, is more complicated and now on its 13th day.
It was almost two weeks ago that Craig Williams – Rishi Sunak’s closest parliamentary aide and former Montgomeryshire MP – admitted he had placed a bet on the election date – a date he might have known before the public at large.
He denies he committed any offence, and remains under investigation.
Laura Saunders, standing for the Tories just south in Bristol North West, has also been suspended for putting a bet on the date when her partner worked in Conservative headquarters on the election.
For most of that time, Mr Sunak has been insisting he could not suspend either candidate because of the ongoing probe by the Gambling Commission.
Ministers, as well as opponents, weighed in.
And on Tuesday he reversed that decision under that pressure.
This means there are questions about the prime minister’s own judgement and unwillingness to act on top of questions about the behaviour of those closest to him.
Image: Craig Williams and Laura Saunders have both been suspended from the Tories. Pics: PA/Laura Saunders for Bristol North West
This story has had massive cut through with the public, topping the charts for any news story in the UK – according to YouGov’s AI news tracker – for the last four days.
There is dismay from the cabinet downwards.
Labour’s own problems have undermined their own ability to go on the attack. But it is not clear that voters will see the two issues on the same scale.
The full list of the candidates running for Central Suffolk and North Ipswich is:
Charlie Caiger, independent; Tony Gould, Reform UK; Mike Hallatt, independent; Brett Alistair Mickelburgh, Lib Dems; Dan Pratt, Greens; Patrick Spencer, Conservatives.
The full list of candidates for Bristol North West is:
Caroline Gooch, Lib Dems; Darren Jones, Labour; Scarlett O’Connor, Reform UK; Mary Page, Green Party; Ben Smith, SDP.
The full list of candidates for Montgomeryshire and Glyndwr is:
Jeremy Brignell-Thorp, Green Party; Oliver Lewis, Reform UK; Glyn Preston, Lib Dems; Elwyn Vaughan, Plaid Cymru; Steve Witherden, Labour.
Four men have been arrested on suspicion of aggravated trespass in the grounds of the prime minister’s home, police have confirmed.
The incident took place at Rishi Sunak’s constituency address in Kirby Sigston, North Yorkshire, while he was attending events in London to mark the Japanese state visit.
A police statement said officers were “with the four men within one minute of them entering the grounds”.
The arrests are connected to a protest by campaigners from Youth Demand. It describes itself as a group of young people who want “the Tories and the Labour Party commit to a two-way arms embargo on Israel, and to stop all new oil and gas licences”.
A spokesperson for the group said three of those arrested were taking part in the demonstration, while the fourth person was an independent photographer.
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A North Yorkshire Police spokesperson said: “They were detained at around 12.40pm before being escorted off the property and arrested on suspicion of aggravated trespass.
“The men, aged 52 from London, 43 from Bolton, 21 from Manchester, and 20 from Chichester, remain in police custody for questioning and enquiries are ongoing.”
It comes after a separate incident last summer, when protesters scaled the roof of Mr Sunak’s home.
They held up banners which said “NO NEW OIL” and draped the building in fabric. It happened while the prime minister and his family were away on holiday in California.
Amy Rugg-Easey, 33, Alexandra Wilson, 32, Michael Grant, 64, and Mathieu Soete, 38, have pleaded not guilty to criminal damage, with a two-day trial set to take place in July.