FTX Creditors Object to Proposed Restructuring Plan

FTX Creditors Object to Proposed Restructuring Plan

FTX Creditors Challenge Restructuring Plan A group of FTX creditors has expressed their opposition to the restructuring plan for the bankrupt crypto exchange. The creditors argue that the plan will not maximize the value of the estate, contains unjustified releases, and disregards property rights. Concerns Raised by Creditors In a court filing, the creditors argued that the cash waterfall mechanism in the plan could impose unnecessary tax obligations, causing additional hardship to customers. They also raised concerns about the lack of disclosure regarding FTX's settlement agreement with the Internal Revenue Service (IRS), which granted the IRS a $2 billion priority claim. Call for Further Transparency The creditors emphasized the need for greater transparency and accountability in the restructuring process. They requested that FTX disclose the details of its IRS settlement agreement, arguing that it could impact the distribution of assets among creditors. Next Steps The objection from FTX creditors adds another layer of complexity to the exchange's ongoing bankruptcy proceedings. The outcome of the court's review of the objection will shape the future of the restructuring plan and the distribution of assets to creditors.