Debtors of bankrupt crypto exchange FTX have revised their motion for settlement after the U.S. Trustee objected to an earlier motion, according to a court filing Sunday. The new proposal will include the U.S. Trustee as a noticed party and reduce the maximum settled value for claims covered by the procedures from the earlier $10 million to $7 million. The two creditor committees, the Official Committee of Unsecured Creditors and the ad hoc committee of international customers, will also receive monthly reports of executed settlements.
Any objections from the ‘noticed parties’ would need to be resolved or settled through an order of the court before the claim process can go through, the debtors’ motion said. The U.S. Trustee had objected to the earlier motion saying $10 million is far too high to constitute a “small” claim without even providing adequate notice as to the nature of the claims.
FTX, formerly the world’s third largest digital assets exchange, went bankrupt in November last year.