- An agreement has been reached between FTX Trading and FTX Digital Markets regarding their global settlement.
- The restructuring process will involve the consolidation of assets between the two companies.
- Affected clients will have the option to decide which party to file their claims with.
FTX, a cryptocurrency exchange, and its affiliated lenders have reached an agreement with the Bahamian unit and its liquidators. The agreement outlines the process for filing claims and distributing funds.
“The Global Settlement Agreement represents a new and mutually beneficial resolution to the complex legal issues that arose from the collapse of the FTX Group,” the statement said.
The agreement specifically allows for the merging of assets between FTX Trading and FTX Digital Markets (Bahamas division). Additionally, affected clients of the platform will be able to independently choose which counterparty to file their refund claims with.
To ensure consistency, both companies have agreed to align their approaches to assessing customer applications, aiming to minimize any potential discrepancies. Users are expected to be able to submit their claims in the latter half of 2024.
It should be noted that filing two claims simultaneously is not possible, as emphasized in the press release. Users who are unable to make a decision during the process will receive funds through the bankruptcy proceedings for FTX Trading, which takes precedence.
The parties also cautioned users that the agreement has not yet been approved by the courts in the United States or the Bahamas. Consequently, certain aspects of the agreement may undergo changes.
Background information:
Recall that FTX Group filed for bankruptcy in November 2022. The Bahamas Securities Commission swiftly initiated an investigation and assumed control over all division assets, commencing the liquidation process under new management.
In March 2023, FTX Trading filed a lawsuit against the Bahamian unit and its liquidators, accusing them of attempting to misappropriate assets.
Previously reported, FTX presented an updated reorganization plan, which entails resolving the dispute with the Bahamas division and resolving a $24 billion claim filed by the US Internal Revenue Service.