The FTX Debtors have released an update on the proposed settlement with preferred shareholders, stating their intention to return 100% of the assets under FTX’s control to creditors as part of the Chapter 11 bankruptcy plan.
FTX Debtors Shares Updates on X
According to the post from official X account, the U.S. Department of Justice (DOJ) is overseeing the distribution of assets forfeited through related criminal cases and has recognized both preferred shareholders and creditors as victims under criminal law.
“The FTX Debtors and the preferred shareholders have competing claims to the forfeiture proceeds,” the statement explained. “While the DOJ will decide how to reconcile these claims, the settlement, if acceptable to the DOJ, would resolve them in a way that FTX believes is fair to both sides and avoids a protracted dispute.”
FTX Debtors also noted that they are asking the DOJ to agree to a centralized distribution process through the Chapter 11 plan. This would accelerate distributions to creditors and help avoid substantial and redundant expenses.
Additional details about the DOJ forfeiture process and related assets were included in a disclosure statement filed by the FTX on June 27, 2024.
