FTX Modifies Settlement Motion After US Trustee Objection in Bankruptcy Case Bankrupt crypto exchange
FTX submitted a "Reply" on Sunday, August 20, to back its
Settlement Plan and address the US Trustee's objection to the Motion.
On August 16,
FTX Trading and its associated debtors submitted a court filing
titled "Motion of Debtors for an Order Authorizing
Procedures for Settling Certain Existing and Future Litigation Claims and Causes of Action." The docket outlines a settlement procedure for addressing
"Small Estate Claims" totaling approximately $176 million.
This procedure enables them to settle these claims without
needing to file motions or give notice to creditors or other parties, except the Official Committee of Unsecured Creditors and the international customer
ad hoc committee. Additionally, court approval for settlement terms would not be required.
The same day, the Official Committee of Unsecured Creditors of FTX
(UCC) objected to the proposed FTX settlement plan due to dissatisfaction among FTX creditors.
Andrew R. Vara, representing the United States Trustee for Regions Three and Nine (US Trustee),
presented the objection filing, citing three independent reasons for the denial.
