legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

New Proposal Aims to Return Over 90% of Assets to Customers of Bankrupt Cryptocurrency Exchanges FTX and FTX.US

Customers who had assets in the now-bankrupt cryptocurrency exchanges FTX and FTX.US are optimistic about the possibility of recovering more than 90% of their funds through an amended proposal. This revised plan seeks to repatriate the assets that were held by the exchanges prior to their collapse in November of the previous year.

The debtors responsible for overseeing the bankruptcy proceedings will formally present the amended proposal to a U.S. Bankruptcy Court for review by December 16, 2023. This filing is expected to provide a roadmap for the equitable distribution of assets to affected customers.

AI legalese decoder: Simplifying Complex legal Terminology

Dealing with bankruptcy proceedings and legal agreements can often be overwhelming due to the convoluted language and jargon commonly used. However, an innovative tool like the AI legalese decoder can significantly assist individuals and entities involved in these situations.

By leveraging the power of artificial intelligence and natural language processing, the AI legalese decoder can accurately interpret and simplify complex legal documents, making them more accessible to the average reader. This tool can save time and effort by efficiently summarizing crucial information, highlighting key elements, and providing clear explanations.

In the case of the amended proposal for FTX and FTX.US customers, the AI legalese decoder can help individuals understand the intricacies of the document, grasp the terms and conditions, and make informed decisions regarding their assets.

New Proposal Divides Customer Assets into Three Pools

Under this revised proposal, the missing customer assets will be categorized into three distinct pools depending on the circumstances at the start of the Chapter 11 cases.

The first two pools will be allocated to assets belonging to FTX.com and FTX.US customers separately. Meanwhile, a “General Pool” will hold other assets currently unassigned to specific customers.

One noteworthy aspect of the proposal is that customers with anticipated settlement amounts of less than $250,000 can accept the proposed settlement without any reduction in their claim or payment. The preference settlement, equal to 15% of customer withdrawals made on the exchange within nine days before the bankruptcy, will be available without reduction for eligible customers whose claims are below $250,000.

However, the success of the asset recoveries may be influenced by various factors including taxation, government claims, and the fluctuation of token prices. Additionally, insiders, affiliates, or customers involved in the misappropriation of customer deposits and corporate funds, as well as those who manipulated their KYC (Know Your Customer) information to facilitate withdrawals during the suspension, may be excluded from the settlement.

A New Dawn for FTX Customers

Last year, FTX suffered a highly publicized collapse due to revelations about its financial state, triggering a series of significant transformations within the company. The recently appointed CEO, John J. Ray III, has voiced his criticism of the previous financial controls in place at FTX.

Furthermore, FTX founder Sam Bankman-Fried is currently undergoing trial proceedings related to the company’s collapse, adding to the uncertainty surrounding the business.

However, this revised proposal instills hope among FTX and FTX.US customers as they eagerly await the return of their assets. If approved, the plan expects to distribute approximately $9 billion for FTX.com customers and $166 million for FTX.US customers by the end of the second quarter in 2024.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link