NEW YORK : Crypto exchange FTX said it expects to negotiate U.S. government claims in its bankruptcy down to $3 billion to $5 billion, leaving no money for shareholders and contradicting a "reckless and false" claim by founder Sam Bankman-Fried that FTX's collapse caused no harm.
FILE PHOTO: An FTX logo is seen through broken glass in this illustration taken, December 13, 2022 REUTERS/Dado Ruvic/Illustration/File PhotoNEW YORK : Crypto exchange FTX said it expects to negotiate U.S. government claims in its bankruptcy down to $3 billion to $5 billion, leaving no money for shareholders and contradicting a"reckless and false" claim by founder Sam Bankman-Fried that FTX's collapse caused no harm.
FTX's current CEO John Ray said in court filings in Delaware bankruptcy court that Bankman-Fried had distorted the company's recent statements about its ability to repay customers in bankruptcy to argue that there was"zero" harm to FTX customers, lenders and investors."Even the best conceivable outcome in the Chapter 11 proceeding will not yield a true, full economic recovery by all creditors and non-insider equity investors as if the fraud never happened," he said.
FTX said in January that it expects to pay customers"in full," but that statement came with a major caveat: It will value customer claims based on the price of crypto in November 2022, and customers will receive no benefit from a significant rise in crypto prices since that date. Many FTX customers are"extremely unhappy" with FTX’s proposed repayment, Ray wrote.
FTX is working towards a settlement that would allow FTX to repay its customers before the government and reduce the total government claims to between $3 billion and $5 billion. The U.S. government has agreed to prioritize customer repayment in recent crypto bankruptcies, including the BlockFi and Genesis Global cases.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New year, new goals and new eats at Republic PlazaWhether looking for a new joint or a nutritious meal, the business district mall is thriving with options.
Read more »
US SEC expected to drag its feet on new wave of crypto ETFsBuoyed by the successful launch of U.S. bitcoin exchange-traded funds (ETFs), asset managers are lining up to list a second wave of more complex crypto products, setting the stage for another tussle with the U.S. securities regulator.
Read more »
New York bar called Singlish amuses Singaporeans, serves drinks called BTO and ChiobuIt's always nice to see a piece of Singapore away from home. So when local voiceover actress Caitanya Schmickrath-Tan was in New York, she was amused to find a bar named after something we are all familiar with — Singlish. In a TikTok video uploaded on Tuesday (Feb 20), the 36-year-old shared that her Singaporean friend who lives in New...
Read more »
Singapore's Rise as the New York of the EastSingapore has become a popular destination for art fairs, renowned chefs, and big performances, while Hong Kong faces challenges with Chinese control and censorship.
Read more »
Conservatives criticize New York’s police defunding amid resident demands for the NYPD During subway attackLatest Breaking News
Read more »
FTX founder Sam Bankman-Fried is no 'super-villain, his lawyers sayNEW YORK : Sam Bankman-Fried is no "super-villain" and should not spend a "medieval" 40 to 50 years in prison as prosecutors propose, lawyers for the founder of bankrupt cryptocurrency exchange FTX said in advance of his sentencing next week.
Read more »