Author: Revc, Golden Finance
1. Introduction
FTX, the fastest-growing CEX unicorn in the history of the cryptocurrency market, with daily peak trading volume exceeding US$6.6 billion and a total token market value of US$26 billion, collapsed, accelerating the end of the last bull market, and as FTX invested in Investors will start paying compensation, and the "ammunition depot" for the second half of the bull market is about to open.
FTX liquidator PwC issued an update on the liquidation process in which clients of FTX or FTX International will have the right to bring claims in either the Bahamas proceeding or the U.S. proceeding, according to an official email. At this stage, if the bankruptcy protection plan is approved, customers can expect to receive between 119 and 143 cents per dollar in claims.
For clients who have submitted a proof of debt claim in a Bahamas proceeding, FTX will send a future letter confirming whether the client wishes to continue to have the claim managed, processed, adjudicated and resolved in The Bahamas. Customers who have not yet submitted a proof of debt claim in the Bahamas process may do so by the deadline, currently expected to be mid-August 2024.
Public information shows that FTX plans to distribute more than $16 billion to its creditors, and the key dates are as follows:
1. August 16: FTX customer voting deadline;
2. October 7: Judge Dorsey issues decision on plan approval.
After the court's approval, FTX will repay creditors within two months. The specific implementation period is from the fourth quarter of 2024 to the first quarter of 2025. The repayment event, together with interest rate cuts, the US election and other factors, will bring more benefits to the encryption market at the end of the year. factor. Given that the majority of FTX customers are cryptocurrency enthusiasts, a massive $16 billion will enter the cryptocurrency market and act as a catalyst for price increases.
2. The key time points for compensation are as follows, investors can keep their attention
PS: There are some uncontrollable factors in the compensation process, such as creditors’ doubts about the compensation plan. The main point of dispute is legal currency compensation or token compensation.
1. Deadline for sending emails: July 10 (passed)
The last date for debtors to send voting packages and related documents to creditors to ensure that all relevant parties receive the necessary information within the specified time to enable them to vote on or raise objections to the plan;
2. Rule 3018 motion submission deadline: July 16
Creditors must file a motion before this date if they request temporary permission or a change in their voting rights. Resolve disputes before the official vote to ensure the vote is fair and accurate.
3. Deadline for submission of supplementary plan documents: August 9
4. Deadline for submission of confirmed objections: August 16
5. Voting deadline: August 16, 4:00 pm (US Eastern Time)
All votes must be properly executed, completed and received by this date;
6. Voting report deadline: 7 days before the confirmation hearing
7. Deadline for responding to confirmation objections: 7 days before the confirmation hearing
8. Proposed date for confirmation hearing: October 7, 10:00 a.m. (US Eastern Time) [tentative]
Hearing dates for the court to consider confirmation of the reorganization plan;
3. As mentioned above, because some creditors are dissatisfied with the compensation plan, the buying power of US$16 billion is still uncertain.
Lawyers overseeing FTX's recent bankruptcy have filed a reorganization plan that would fully compensate nearly all customers and provide an additional 18% interest. If a majority of creditors and a bankruptcy judge agree to the plan, compensation would be paid out within two months. However, creditors still expressed dissatisfaction and concerns about the following aspects:
Creditors dissatisfied with restructuring plan
Some creditors were unhappy with the restructuring plan because they were unable to get their original cryptocurrencies back from the exchange. Instead, they will be compensated in U.S. dollars based on the value of the cryptocurrency they held when FTX filed for bankruptcy in November 2022. Many believe this caused them to miss out on a profit opportunity, as cryptocurrency prices have since risen.
Creditors accuse FTX of selling assets at a low price
Creditors also accuse FTX of selling some of its assets, such as crypto derivatives platform LedgerX and a large number of SOL tokens, at low prices before going bankrupt. They believe the transactions harmed creditors and have called for an investigation into those involved.
Creditors question FTX 2.0 plans
Some creditors believe FTX could have received hundreds of millions of additional dollars in value if it decided to restart its trading platform. However, FTX said they had explored the possibility of a relaunch but were unable to find any buyers willing to invest.
Creditors worried about unpursued claims
Creditors are also concerned that FTX may not be pursuing all deserved claims, such as those against Binance. FTX stated that they are still investigating and filing lawsuits, but have not made a final decision on matters related to Binance.
Reorganization plan faces opposition
In addition to the above issues, some creditors have also raised objections to certain terms of the restructuring plan, such as the distribution method and governance structure. They argued the plan was too favorable to FTX's management team and lacked oversight of creditors.
4. Summary
It has been two years since the FTX thunderstorm. Although investors will receive compensation of nearly 1.18 times the nominal value, they have also paid a huge cost of time and energy. While asserting their rights, creditors must also realize that since most of the assets have been Being liquidated, FTX only held U-margin assets that had lost the potential to achieve high returns in the bull market.
Back to this article, if the existing compensation plan is followed, nearly $16 billion will be injected into the crypto market at the beginning of the fourth quarter, which is bound to increase market liquidity and enhance investor confidence.
(The above content is excerpted and reprinted with the authorization of our partner PANews, original text link | Source: Golden Finance)
Statement: The article only represents the author's personal views and opinions, and does not represent the objective views and positions of the blockchain. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.
〈FTX’s $16 billion compensation is imminent, is the “second half of the bull market” about to begin? 〉This article was first published in "Block Guest".