The bankruptcy authority of the now-defunct cryptocurrency exchange FTX has decided to withdraw its proposal aimed at limiting creditor distributions to certain “potentially restrictive foreign jurisdictions.” This decision comes after significant opposition from creditors and a wave of objections submitted in the bankruptcy court.
FTX Trust abandons controversial plan
FTX Recovery Fund, which provided the He notices He had previously requested court approval to freeze payments to creditors in 49 countries, including China, Saudi Arabia, Russia and Ukraine, citing vague or restrictive domestic regulations surrounding cryptocurrencies.
The fund's proposal, submitted in early July, aims to implement measures that could have significantly affected the rights of creditors in these areas. However, numerous objections – more than 70 – were lodged shortly after the proposal was published, prompting the estate to reconsider its approach.
Weiwei Ji, the creditor, Confirm While the withdrawal represents a victory for affected creditors, it is crucial that we remain vigilant until compensation is received in full. He warned that the implications of this move extend beyond FTX's creditors and could undermine confidence in the global cryptocurrency ecosystem.
In related developments, FTX's planned repayment strategy has raised concerns about the actual value of the distributions. Creditor representative Sunil Kavori warned that creditors may receive much less than expected, especially since repayment is being issued in fiat currency rather than cryptocurrencies.
He pointed out that while the seminary set a percentage of 143% Payment plan In terms of fiat currencies, this does not adequately reflect the losses incurred when measured against cryptocurrencies.
Meanwhile, amid FTX's legal struggles, co-founder Sam Bankman-Fried is seeking to have his fraud conviction and 25-year prison sentence overturned.
Sam Bankman-Fried seeks to overturn the conviction
Bankman Fried Legal Team He argues He was wrongly convicted due to a rush to judgment influenced by the media, prosecutors, and, in particular, U.S. District Judge Lewis Kaplan. In a memorandum filed with the 2nd U.S. Circuit Court of Appeals, Bankman-Fried's lawyers asserted that he was presumed guilty even before he was formally charged.
The appeal was filed by Alexandra Shapiro, a criminal appellate attorney known for her successes in similar cases. She is scheduled to argue against the conduct of Judge Kaplan, who has been accused of bias against Bankman-Fried throughout the trial.
The defense claims that Kaplan pressured jurors to render a speedy verdict by offering accommodations and suggesting that their deliberating hours could be extended. Furthermore, they assert that the judge “ridiculed” Bankman-Fried's testimony and undermined his defense.
Bankman-Fried's legal team is also challenging Kaplan's decision to bar him from telling the jury that FTX has sufficient assets Pay their customersWhile the prosecution was allowed to confirm that he stole billions, which led to the company's downfall.
Amid these legal battles, there are reports that Bankman-Fried's parents are exploring options to secure title to the property Presidential pardonMaybe from former President Donald Trump. The Bankman-Fried team maintains that it did not intend to defraud customers, believing they would eventually get their money.
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