FTX updates bankruptcy plan, seeks U.S. DOJ approval for settlement with shareholders

In a series of threads on X, defunct crypto exchange FTX has updated its bankruptcy settlement with preferred shareholders, stating it will return all assets it controls to creditors as outlined in its Chapter 11 plan. The U.S. Department of Justice (DOJ), which manages assets seized in related criminal cases, recognizes both creditors and preferred shareholders as victims. FTX and the preferred shareholders have overlapping claims on these assets, and the proposed settlement, pending DOJ approval, seeks to resolve these claims fairly and efficiently. It was previously reported that the next court hearing for the restructuring plan is scheduled for Oct. 7, presided over by Judge John T. Dorsey.