FTX’s Next Phase: To Present Updated Reorganization Plan by Mid-December

<p>FTX is preparing to unveil an updated plan for its
reorganization by mid-December. This plan, aimed at compensating unsecured
creditors, comes amid a surge in activity surrounding the crypto exchange's
bankruptcy proceedings.</p><p>In a letter addressed to the FTX 2.0 Customer Ad Hoc
Committee, the Official Committee of Unsecured Creditors has emphasized the
need to maintain a balance in asset valuation and distribution within the amended reorganization plan. This plan aims to reconcile the different
perspectives of the stakeholders.</p><p>FTX's Bankruptcy Proceedings and Potential
Acquisitions</p><p>Several activities, including a potential
acquisition by financial services firm Perella Weinberg, loom over the
bankruptcy proceedings. These activities will be formally presented for approval by the court. Concepts such as issuing recovery rights tokens, mentioned in the FTX 2.0 Customer Ad Hoc Committee's communication, are under scrutiny.</p><p>FTX and its affiliated companies, comprising 101 out
of 130 entities, have initiated a review of their global assets. The primary
goal is to obtain maximum value for stakeholders. However, FTX has
clarified that the engagement with Perella Weinberg is contingent upon approval by the court.</p><p>Gary Gensler, the Chair of the SEC, recently hinted at
potential approval for a revamped <a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">FTX</a> crypto exchange, provided adherence to the law. Meanwhile, the Official Committee of Unsecured Creditors has
expressed eagerness to collaborate with the FTX 2.0 Customer Ad Hoc Committee
in the coming months.</p><p>Last month, a <a href="https://www.financemagnates.com/terms/b/bankruptcy/">bankruptcy</a> court in Delaware <a href="https://www.financemagnates.com/cryptocurrency/ftx-given-green-light-to-sell-873m-in-assets-managed-by-grayscale-bitwise/" target="_blank" rel="follow">granted FTX permission</a> to liquidate approximately $873 million worth of assets,
predominantly held in trusts managed by Grayscale Investments and Bitwise. This
decision marked a significant milestone in FTX's efforts to repay creditors
impacted by the collapse of the crypto exchange.</p><p>Navigating FTX's Asset Recovery Efforts</p><p>Initiated by a motion filed on November 3, the
court's approval covers the sale of six cryptocurrency trusts, including the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust
(ETHE), and Bitwise 10 Crypto Index Fund. FTX's holdings in Grayscale, totaling
22 million units of GBTC and 6.3 million shares of ETHE, represent a
substantial portion of the sanctioned assets.</p><p>FTX has been <a href="https://www.financemagnates.com/cryptocurrency/ftxs-debtors-battle-for-asset-control-amid-restructuring-plans/" target="_blank" rel="follow">working to recover assets</a> under the leadership of John J. Ray
III since the
crypto exchange collapsed in November 2022. The recovery, amounting to nearly $7 billion, is crucial to the exchange's creditors, with
<a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a> accounting for nearly half of the reclaimed sum. </p><p>Besides that, FTX is embroiled in lawsuits targeting alleged
fraudulent asset transfers. These include substantial sums received by Bybit's
Mirana Corp and Time Research before the bankruptcy. Additionally, creditors are
evaluating the legality of recovering endorsement fees paid to athletes and
sports clubs.</p>

This article was written by Jared Kirui at www.financemagnates.com.