Collapsed Crypto Exchange FTX Sends Funds to Binance in Preparation for Sale to Repay Creditors
Collapsed crypto exchange FTX is reportedly transferring $8.6 million in Ethereum, Chainlink, Aave, and Maker from its wallets to Binance, leading analysts to believe that this is the beginning of a sale to repay creditors. FTX went bankrupt last November due to alleged criminal mismanagement, with around $9 billion in client money going missing. The company's new management is in the process of returning the funds, with a lot of the cash in the form of digital coins and tokens. FTX's ex-CEO and co-founder, Sam Bankman-Fried, is currently on trial facing seven criminal charges related to the collapse of the exchange.
FTT's 24-hour increase reached 25.91%, which may be affected by the news that SBF will appear in court to testify.
According to market data, FTT has surged to 1.4511 USDT in the short term, with a 24-hour increase of 25.91%, possibly due to the news that SBF will testify in court on Thursday. The current price is 1.3341 USDT.
FTX is in talks with three bidders to restart the exchange
FTX is considering proposals from three bidders to restart the exchange and will make a decision on how to proceed by mid-December. FTX is currently negotiating with investors on potentially binding offer details. Possible options include selling the entire exchange, including a list of over 9 million customers, or introducing partners to help restart the exchange. FTX is also considering restarting the exchange on its own. FTX and its main creditor group have preliminarily resolved some disputes in the case, which will enable them to submit a detailed payment plan in December. <br>
FTX is negotiating with three bidders to restart the exchange and will make a decision by mid-December
According to Bloomberg, FTX is in talks with three bidders to restart the cryptocurrency exchange, and the company will make a decision on how to proceed before mid-December.
It is reported that FTX is negotiating with investors on potentially binding tender details, including options to sell the entire exchange (including a list of over 9 million customers), or to introduce partners to help restart the exchange. FTX is also considering restarting the trading platform on its own.
Andrew Dietderich, the company's lawyer, stated at a court hearing that FTX and its main group of creditors have preliminarily resolved some of the most difficult disputes in the case, which will allow the company to submit a detailed payment plan in December.
FTX Creditors Alliance: Preliminary public bidding acquisition will be announced before December 16
FTX 2.0 Coalition, a group of FTX creditors, has released the latest court update: 1. The stalking horse bid will be announced before December 16th. Note: The stalking horse bid refers to the initial public bidding action proposed by the buyer selected by the company applying for bankruptcy protection, which can attract more potential buyers to propose competitive acquisition prices. 2. A motion to estimate the value of cryptocurrency claims will be made in November. 3. Customer names will remain anonymous (permanently anonymous for natural persons).
FTX co-founder, CEO of Alameda, and head of engineering plead guilty in exchange for cooperation against Sam Bankman-Fried
Gary Wang, Caroline Ellison, and Nishad Singh, who all pleaded guilty to charges related to the downfall of crypto exchange FTX and its sister company in November 2022, testified against Sam Bankman-Fried at his trial in the Southern District of New York courthouse. The three are facing potential prison sentences of up to 50, 110, and 75 years, respectively. However, as part of their cooperation agreements with the U.S. government, they may avoid jail time if they continue to cooperate and tell the truth. While it is not guaranteed, it is typical for first-time offenders in white-collar cases to avoid jail time as cooperating witnesses.
FTX’s Proposed Settlement Could Pay Creditors 90% of FTX’s Remaining Assets Following Bankruptcy Proceedings
According to CoinDesk, FTX is proposing a settlement agreement to pay 90% of the remaining assets after the FTX bankruptcy proceedings to creditors. Lawyers representing some creditors are now working to secure enough investor support to implement this agreement.
FTX creditor lawyer: The goal is to allow users to get their locked funds back in July next year
Lawyers representing FTX creditors are working to push the bankruptcy case forward with the goal of returning 90% of funds to users. The lawyers must obtain the support of 60 individuals and entities in the creditor group and 75% of investors who register as members in the coming weeks before December 1st. Eversheds Sutherland lawyer Sarah Paul said that even if the settlement plan is approved by creditors, approval from the bankruptcy court is still required. The ultimate goal is to emerge from bankruptcy by around July 2024, at which time users will be able to retrieve funds that have been locked since last year.
The Price of Some of FTX’s Claims Has Exceeded 50%, and Creditors Are Pinning Their Hopes on FTX’s Anthropic Shares
Thomas Braziel, a partner at 117 Partners specializing in FTX debt research, said that some FTX debt off-exchange trades have been valued at over 50%, indicating that the market currently expects about half of user assets to be recovered. Last Friday, a debt worth over $20 million was sold at an auction for about 52% of the price, but only "the largest and cleanest debt" could be sold at this price.
Claims of some FTX creditors rise to 50 cents in OTC trading
Thomas Braziel, who specializes in FTX debt claims, stated that some FTX creditors value their claims at over $0.5. Purchasing a claim gives the holder the right to recover any assets from FTX's bankruptcy estate, and a price above $0.50 indicates that the market currently expects about half of user assets to be recovered.
Braziel, a partner at 117 Partners, said that in Friday's auction, claims worth over $20 million were sold at around 52 cents, but only the "largest, cleanest claims" were able to fetch that price. Since the artificial intelligence company Anthropic, which purchased a large stake in FTX, announced several major investments recently, enthusiasm for the value of FTX claims has continued to rise. Creditors hope that selling shares in Anthropic will help return funds to creditors and potentially achieve full recovery.
In a January survey of X, most respondents expected a claims payout rate of only 25%. Since then, the FTX debtor estate led by CEO John Ray III has attempted to recover funds, started selling tokens, and liquidated other assets of the estate. Meanwhile, SBF's criminal trial is still ongoing.
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