FTX files reorganization plan to end bankruptcy
FTX creditors to vote next year on whether to approve bankruptcy plan
FTX founder’s ‘hubris was on display’
FOX Business’ Kelly O’Grady reports on the trial of Sam Bankman-Fried after the former FTX CEO was found guilty on seven counts of criminal fraud.
FTX filed an amended reorganization plan over the weekend, providing a framework for ending its bankruptcy and returning money to investors and customers.
The failed cryptocurrency exchange, now led by chief executive John J. Ray III, is proposing to value the firm's assets at the date of its bankruptcy filing on Nov. 11, 2022, a move that could cause some creditors to balk given that the price of bitcoin has more than doubled in value since that time.
John Ray III, chief executive officer of FTX, speaks during a House Financial Services Committee hearing in Washington, D.C., on Dec. 13, 2022. (Al Drago / Bloomberg / Getty Images)
Eligible creditors will have the opportunity to vote on approving the plan at some point in 2024, but no date has been solidified.
In an October filing, FTX indicated that it aimed to give back 90% of distributable assets to creditors and said the figure would be clarified in the December filing – but that information was notably absent from the document submitted Saturday in Delaware bankruptcy court.
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The latest proposal did not reveal whether FTX plans to resume operations after it ends bankruptcy. That and other key details are expected in future filings, including how much creditors can expect to receive back.
FTX filed an amended proposal on Saturday, providing a broad plan for ending its bankruptcy. (Andrey Rudakov / Bloomberg / Getty Images)
Prior to its downfall, FTX was the world's second-largest crypto exchange and was once valued at an estimated $32 billion. Ray previously warned customers and investors who put their money in FTX to not hold out hope for a full recovery, telling a congressional panel late last year, "We will never get all these assets back."
SAM BANKMAN-FRIED'S TRIAL, VERDICT IN PICTURES
FTX's former CEO, co-founder Sam Bankman-Fried, was convicted last month of seven federal charges of fraud and conspiracy in connection with the collapse of the exchange, and he faces a second trial on additional charges in March.
Former FTX chief Sam Bankman-Fried was convicted last month on several federal charges related to the collapse of his crypto empire and could face decades in prison. (Angela Weiss / AFP / Getty Images)
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Bankman-Fried has pleaded not guilty to every charge brought against him and could face decades in prison. His sentencing is slated for March.
FOX Business' Kelly O'Grady contributed to this report.