According to a court filing on Sunday, bankrupt cryptocurrency exchange FTX has amended its settlement request in response to the U.S. Trustee’s objections.
Even though they have referred to the U.S. Trustee as the “sole objector” who is attempting to interfere in what they see as a routine settlement procedure that is already protected by two different creditor committees, the FTX debtors have taken measures to address the Trustee’s concerns in their updated plan.
The revised plan lowers the maximum settlement value for claims covered by the processes from the previously proposed $10 million to $7 million and now names the U.S. Trustee as a party to be notified. The debtors will also provide monthly reports on settlements that have been completed. Before the claim procedure may start, any objections made by these “notified parties” must be handled or resolved through a court order.
The Official Committee of Unsecured Creditors and an ad hoc committee made up of overseas clients are the two creditor committees participating in this situation.
The U.S. Trustee objected on the grounds that there was insufficient notice on the nature of these claims and that the $10 million threshold for “small” claims was excessively high.
In November of the previous year, FTX, which had previously been the third-largest digital asset exchange in the world, declared bankruptcy.