FTX Unveils a Revised Reorganization Plan

The company behind FTX, led by CEO John Ray III and lawyers from Sullivan & Cromwell, has filed an updated plan of reorganization under Chapter 11 bankruptcy.

This plan outlines how claims will be treated in the case, with a notable provision being the valuation of digital assets in cash as of the bankruptcy filing date of Nov. 11, 2022.

The collapse of FTX caused a dip in the market, but it has since recovered and even seen growth in the crypto market cap.

However, creditors could potentially lose out on millions in potential gains if the plan is approved.

Sunil Kavuri, a creditor of FTX, believes the plan goes against the company’s Terms of Service, which stated that customers owned their digital assets, not the exchange.

Kavuri claims that the reason SBF (Sam Bankman-Fried) was found guilty on all 7 counts was due to stealing digital assets belonging to customers.

The reorganization plan states that creditors in certain classes will have the chance to vote on the amended plan.