Key Points
Starting in January, the FTX creditors began to form a voting block, now made up of 1,600 claimants..
Filed on Tuesday, the FTX bankruptcy plan charts a path to a full recovery, plus interest, for practically all creditorsmade possible, according to FTX, by the liquidation of billions of dollars worth of investments made by the exchanges venture capital arm, FTX Ventures, and its sister company, Alameda Research...
Under the proposed plan, government bodies in the United Statesincluding the Internal Revenue Service and the Commodities and Futures Trading Commissionhave agreed to suspend high-value claims against FTX until creditors had been repaid (although the IRS will receive a $200 million upfront payment as part of the settlement)...
Under one particular clause, FTX pledges not to pursue preference actionsa type of lawsuit that aims to claw money that had left company coffers in the period immediately before a bankruptcy back into the estateagainst customers who raced to withdraw their crypto, but only if they vote in favor of the plan..
In a statement provided to WIRED, FTX rejected the idea that it will be free to operate without oversight or diverge unilaterally from the plan if it is approved by creditors, and says that the bankruptcy court will continue to have complete oversight over its actions..
