FTX creditors

FTX stated that the acquisition of its EU subsidiary by Backpack has not yet received court approval and has not been authorized to distribute funds to FTX creditors

ChainCatcher news, according to Cointelegraph, the bankrupt cryptocurrency exchange FTX stated that the acquisition of its European branch FTX EU by the cryptocurrency exchange Backpack has not yet been approved by the bankruptcy court, and Backpack has not been authorized to distribute funds to FTX creditors.Backpack announced on January 7 that it has acquired FTX EU and stated that it will assume the responsibility of repaying debts to EU customers as part of the court-approved bankruptcy process. Backpack founder Armani Ferrante stated that his exchange will not conduct any transactions in the EU until it can repay FTX creditors, adding that it may be ready as early as February.However, FTX stated in a statement on January 8 that Backpack's "claim" of acquiring FTX EU has not occurred and has not been approved by the U.S. Bankruptcy Court for the District of Delaware, adding that all statements released by Backpack were made without FTX's knowledge. FTX debtors had previously agreed to sell FTX EU to some "former insiders" of FTX Europe under a settlement agreement supervised by the bankruptcy court, but only stated that they were informed that these former insiders had agreed to indirectly transfer FTX EU to Backpack. FTX also noted that Backpack has not been granted the authority to manage the repayment to creditors.

FTX creditors oppose the bankruptcy reorganization plan, stating that cash payments will lead to additional taxes

ChainCatcher news, according to CryptoSlate, a creditor group led by Sunil Kavuri opposes the reorganization plan proposed by the FTX bankruptcy administrators. According to documents submitted to the court on June 5, the creditors pointed out that the plan did not pass the best interest test and contained terms that were not in the creditors' interests, while also ignoring property rights issues.The creditors stated that cash payments would result in customers needing to pay taxes on the cash received. They suggested using physical payments to avoid tax issues. The creditors further stated that FTX must update the disclosure statement regarding the settlement with the Internal Revenue Service (IRS). Under the settlement plan, the IRS will receive $200 million in priority claims within 60 days of approval. An additional $685 million in subordinated priority claims will be paid after customers receive full compensation.It is reported that on May 7, the FTX bankruptcy administrator announced the reorganization plan, under which creditors would receive full cash repayment. According to the plan, creditors with claims under $50,000 would be eligible for 118% compensation within 60 days of court approval. Other non-government creditors would also receive full compensation and up to 9% interest compensation.
ChainCatcher Building the Web3 world with innovators