FTX Resolves Customer Property Disputes, $9B Payout Expected
FTX Trading Ltd. and its affiliated debtors, known as FTX Debtors, have announced a proposed settlement of customer property disputes in their pending chapter 11 cases. The settlement, called the Customer Shortfall Settlement, will be part of an amended Plan of Reorganization to be filed by the FTX Debtors in December 2023. If approved, the settlement would resolve customer property litigation and allow customers to receive over 90% of the distributable value worldwide. The Amended Plan also includes an offer to settle FTX.com and FTX US preferences at specified amounts. The settlement was reached after extensive negotiations among the FTX Debtors, customer representatives, and creditors.