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Bankrupt crypto exchange FTX and its debtors have suggested reducing the maximum settlement value for “small estate claims” from $10 million to $7 million. The changes follow opposition from the US Trustee to a settlement proposal previously put forward by the exchange.
FTX and its debtors noted in court documents filed yesterday (Sunday) that the US Trustee, which is the office in the US Department of Justice that oversees the administration of bankruptcy cases, criticized the move. They argued that the objection should be dismissed and the motion granted.
“The US Trustee — the sole objector to the Mosi — is seeking to inject itself into a routine settlement process already adequately protected by two different creditor committees,” the crypto exchange explained.
FTX further explains: “The establishment of an omnibus settlement procedure in complex cases is routine, appropriate, and legal. Indeed, contrary to the advice of the US Trustees, courts often allow settlement of claims by category and authorize relief similar to that requested by the Debtor in here.
“The Debtors convey that the proposed Settlement Procedure will enable fast, efficient and cost-effective settlement of large amounts of Small Plantation Claims. This simplified settlement will maximize recovery for all creditors in this Chapter 11 Case, and minimize the burden placed on Courts in resolving potential thousands of individual Bankruptcy Rule motions 9019.”
In addition to the proposed adjustments to the maximum settlement value of “small plantation claims”, FTX and its debtors, in an effort to address the issues raised by the US Trustee in its objections, have proposed filing monthly reports of executed settlements. They also want to include a US Trustee as a third “party of interest” in the arrangement.
Meanwhile, Financial figure reports that FTX has reached a settlement agreement in its legal dispute with Genesis, another bankrupt digital asset lender. FTX will receive a $175 million payout directed to Alameda Research, its affiliated crypto hedge fund that is also facing bankruptcy.
This settlement was a major compromise for FTX. Earlier in May, the crypto exchange had petitioned to close nearly $4 billion in transfers it claimed were made to Genesis between August 13 and November 11, 2022.
ThinkMarkets adds Taiwan index; Bitget mandates KYC; read today’s news nuggets.
Bankrupt crypto exchange FTX and its debtors have suggested reducing the maximum settlement value for “small estate claims” from $10 million to $7 million. The changes follow opposition from the US Trustee to a settlement proposal previously put forward by the exchange.
FTX and its debtors noted in court documents filed yesterday (Sunday) that the US Trustee, which is the office in the US Department of Justice that oversees the administration of bankruptcy cases, criticized the move. They argued that the objection should be dismissed and the motion granted.
“The US Trustee — the sole objector to the Mosi — is seeking to inject itself into a routine settlement process already adequately protected by two different creditors’ committees,” the crypto exchange explained.
FTX further explains: “The establishment of an omnibus settlement procedure in complex cases is routine, appropriate, and legal. Indeed, contrary to the advice of the US Trustees, courts often allow settlement of claims by category and authorize relief similar to that requested by the Debtor in here.
“The Debtors convey that the proposed Settlement Procedure will enable fast, efficient and cost-effective settlement of large amounts of Small Plantation Claims. This simplified settlement will maximize recovery for all creditors in this Chapter 11 Case, and minimize the burden imposed on Courts in resolving potential thousands of individual Bankruptcy Rule motions 9019.”
In addition to the proposed adjustments to the maximum settlement value of “small plantation claims”, FTX and its debtors, in an effort to address the issues raised by the US Trustee in its objections, have proposed filing monthly reports of settlements carried out. They also want to include a US Trustee as a third “party of interest” in the arrangement.
Meanwhile, Financial figure reports that FTX has reached a settlement agreement in its legal dispute with Genesis, another bankrupt digital asset lender. FTX will receive a $175 million payout directed to Alameda Research, its affiliated crypto hedge fund that is also facing bankruptcy.
This settlement was a major compromise for FTX. Earlier in May, the crypto exchange had petitioned to close nearly $4 billion in transfers it claimed were made to Genesis between August 13 and November 11, 2022.
ThinkMarkets adds Taiwan index; Bitget mandates KYC; read today’s news nuggets.
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