Bankruptcy Estate of FTX Withdraws Controversial Motion
The bankruptcy estate of the former cryptocurrency exchange FTX has retracted its proposal to restrict creditor distributions in certain foreign jurisdictions. This decision comes after significant resistance from creditors and numerous objections raised in bankruptcy court.
FTX Recovery Trust Abandons Disputed Plan
The FTX Recovery Trust had recently filed a notice to withdraw its controversial request to halt creditor payouts in 49 countries, including China, Saudi Arabia, Russia, and Ukraine. The initial motion, submitted in July, aimed to adhere to unclear or prohibitive local cryptocurrency regulations. However, more than 70 objections were filed in response, leading the estate to reassess its stance.
Advertisement Banner
Weiwei Ji, one of the creditors, remarked that the withdrawal marks a win for the affected creditors. However, he stressed the importance of remaining cautious until the full compensation is disbursed. Ji warned that the implications of the initial motion could have undermined global trust in the cryptocurrency sector.
Concerns Over FTX Estate’s Repayment Strategy
In parallel developments, the FTX estate’s repayment strategy has sparked apprehension concerning the actual value of distributions. Sunil Kavuri, a creditor representative, expressed concerns that payouts might fall short of expectations since they are being dispensed in fiat currency rather than digital currencies. He highlighted that while the estates plan for a 143% repayment in fiat terms, it fails to adequately capture the losses when evaluated against cryptocurrency values.
Sam Bankman-Fried’s Legal Battles Continue
Amidst FTX’s ongoing legal challenges, co-founder Sam Bankman-Fried is striving to overturn his fraud conviction and 25-year prison sentence. His legal team argues that his conviction resulted from a hasty judgment influenced by media narratives, prosecutorial actions, and particularly, US District Judge Lewis Kaplan.
Appeal Against Judge Kaplan’s Conduct
Bankman-Fried’s appeal, lodged with the 2nd US Circuit Court of Appeals, contends that he was presumed guilty before official charges were laid. Alexandra Shapiro, a criminal appeals attorney with a track record of successes in similar cases, is spearheading the appeal. She will challenge Judge Kaplan’s conduct, alleging bias and undue pressure on jurors to deliver a quick verdict, including offering conveniences and proposing extended deliberation hours. The defense also argues that Judge Kaplan discredited Bankman-Fried’s testimony and hindered his defense.
Additionally, Bankman-Fried’s legal team is disputing Kaplan’s decision to bar him from informing the jury that FTX possessed adequate assets to reimburse its customers. Meanwhile, the prosecution was allowed to claim that Bankman-Fried embezzled billions, leading to FTX’s collapse.
In the midst of these legal proceedings, reports have emerged suggesting that Bankman-Fried’s parents are seeking avenues for a presidential pardon, potentially from former President Donald Trump. Bankman-Fried’s defense maintains that he never intended to deceive customers, believing that they would eventually be reimbursed.
Commitment to Editorial Integrity
The editorial process at Bitcoinist is dedicated to providing meticulously researched, precise, and unbiased content. We adhere to rigorous sourcing standards, and all content is thoroughly reviewed by our team of eminent technology experts and experienced editors. This diligence ensures the integrity, relevance, and value of our content for our readers.
