FTX debtors reach a solution for customer asset disputes, with customers expected to receive over 90% of allocable assets.

BlockBeats reported on October 17 that FTX Trading Ltd. (FTX.com) and its related debtors announced today the proposal to resolve customer asset disputes (referred to as the "Customer Shortage Resolution Plan") in the 11th bankruptcy case. This resolution plan will be proposed as part of the restructuring plan submitted by FTX debtors before December 16, 2023. If approved by the bankruptcy court, the resolution plan will resolve the customer property lawsuits against FTX debtors and help confirm the revised plan in the second quarter of 2024. The customer property lawsuit claims that customers of FTX.com and FTX US have property rights on certain assets, rather than unsecured claims that rank equally with general creditors. The resolution plan resolves the dispute by providing customers with a claim against FTX debtors, which, although unsecured, has priority on certain properties separated from or withdrawn from the trading platform. If approved by the bankruptcy court according to the revised plan, FTX debtors estimate that customers of FTX.com and FTX US will receive over 90% of the distributable value worldwide.