FTX's bankruptcy plan has been voted on on 8/16 and received overwhelming support. A hearing will be held on 10/7, which also symbolizes that creditors have taken a big step closer to claiming compensation. However, according to a recent filing by the U.S. Securities and Exchange Commission (SEC), the agency may oppose any attempts to repay creditors with stablecoins or other digital assets.
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ToggleThe vote was overwhelmingly supported and a hearing will be held on 10/7
According to FTX's press release , more than 95% of creditors who submitted a vote voted in favor of the restructuring plan, accounting for 99% of the voting claims by value.
FTX CEO John J. Ray III said:
The strong voting participation and corresponding results underscore the strong support and consensus for FTX’s restructuring plan. We will continue to work constructively with our creditors and the courts. Distribute cash to customers and complete the Chapter 11 process.
FTX will submit final voting results to the U.S. Bankruptcy Court for the District of Delaware ahead of a confirmation hearing scheduled to begin on October 7, 2024.
According to previous reports , the Bahamas FTX liquidator expected creditors to recover 119 to 143 cents per dollar.
SEC: May object to stablecoin distribution
Although FTX, led by CEO John Ray III and legal counsel Sullivan & Cromwell, has rejected the idea of restarting the exchange, claiming that no investors are willing to provide the funds needed to restart the offshore exchange. Creditors are also certain that they will not be able to recover crypto assets like Mt. Gox, but there is also news that FTX may return assets to creditors in the form of stable coins.
However, according to a recent filing by the U.S. Securities and Exchange Commission (SEC), the agency may oppose any attempts to repay creditors with stablecoins or other digital assets. It also pointed out that FTX’s plan failed to specify who would distribute the stablecoin if the terms were approved.
The document mentioned that according to the reorganization plan submitted by FTX (Case No. 22165, page 12), the definition of "cash" includes stablecoins pegged to the US dollar. However, FTX has not yet identified a distribution agent that may distribute stablecoins to creditors under the plan.
The SEC has not expressed an opinion on the legality of the transactions outlined in the plan, but will reserve the right to challenge transactions involving crypto assets .
