ChainCatcher news, according to TheBlock, the FTX bankruptcy plan has been criticized by the largest group of FTX creditors represented by Sunil Kavuri. Kavuri stated that when FTX filed for bankruptcy in 2022, the asset management agency in charge of liquidation should pay in the form of physical cryptocurrency rather than in USD value. David Adler, a lawyer representing some creditors, also stated in court that if creditors receive compensation in cash instead of physical assets, they will face significant taxes.Previous news, a U.S. judge approved the FTX bankruptcy plan to fully repay cryptocurrency customers in cash plus interest.

ChainCatcher news, according to Coindesk, U.S. Delaware bankruptcy court judge John Dorsey decided on Monday during a hearing to approve the FTX bankruptcy plan, which will fully repay cryptocurrency customers in cash plus interest. Under the plan, 98% of creditors will receive at least 118% of the value of their claims in cash.FTX lawyers stated that they are still considering distributing stablecoins to creditors as an option and confirmed that they are in discussions with at least four companies that could handle such distribution if necessary.

ChainCatcher news, according to Bloomberg, more than 80 former individual clients of FTX have submitted letters to oppose a plan that ties the value of their digital assets to the date FTX filed for bankruptcy (November 11, 2022) and pays claims in dollars instead of returning cryptocurrency. Robert Shearer from Bronxville, New York, wrote in an objection: "The Bitcoin and Ethereum I held on FTX before the collapse were purchased nearly a decade ago. Simply put, I have no intention of selling at the market's lowest price."Since the bankruptcy, a team of bankruptcy experts led by FTX's Chief Restructuring Officer John J. Ray III has been working to recover as much cash and crypto assets as possible. The team has obtained court approval to sell the cryptocurrencies held on the platform to create a multi-billion dollar fund that can be returned to customers. The amount of each customer's claim will be based on the price of the cryptocurrencies they held on the FTX platform when the company filed for Chapter 11 in Wilmington, Delaware. Court records show that for Bitcoin holders, this means they will be owed $16,871 for each Bitcoin they hold.The FTX bankruptcy team argued in court documents that calculating the precise value of each customer's digital portfolio is impractical due to the excessive number of claims. In the coming months, a payment plan will be submitted to creditors for a vote and then presented to U.S. Bankruptcy Judge John Dorsey for final approval. An official committee representing creditors, along with a group that includes several large cryptocurrency holders, has agreed to the general framework of the plan.

ChainCatcher news, Cointelegraph reports that U.S. Bankruptcy Judge Michael A. Kaplan approved BlockFi's third amended Chapter 11 bankruptcy plan during a court hearing on September 27. The amount repaid to BlockFi's unsecured creditors will largely depend on whether BlockFi can achieve success in its legal battles with FTX and other bankrupt crypto companies. It is estimated that BlockFi owes over 100,000 creditors up to $10 billion, including $1 billion to its three largest creditors and $220 million to the bankrupt crypto hedge fund Three Arrows Capital.

ChainCatcher news, according to Blockworks, FTX has opposed BlockFi's bankruptcy plan, stating that there are still certain fundamental flaws and that the plan unfairly discriminates against FTX claims in some aspects, requesting the court to dismiss the plan.The document states that FTX debtors do not seek to prevent BlockFi debtors from returning funds to creditors, but must ensure that any plan is fair to FTX creditors in the absence of a consensus resolution.

ChainCatcher news, the cryptocurrency lending platform BlockFi and its affiliates have announced that the disclosure statement for their bankruptcy plan has received conditional approval from the U.S. Bankruptcy Court for the District of New Jersey and became effective on August 2. The plan aims to maximize the recovery of funds for customers and return customer funds as quickly as possible. BlockFi and the official committee of unsecured creditors recommend that all parties entitled to vote accept the plan before the voting deadline of September 11.BlockFi stated that if the plan is confirmed, it will focus on seeking claims against Alameda, FTX, Three Arrows Capital, Emergent, Marex, and Core Scientific in litigation to maximize compensation for customers and defend against claims from third parties.Qualified creditors of BlockFi have the opportunity to vote in favor of the plan and will receive BlockFi's disclosure statement and plan, detailed voting instructions, and other important information.

ChainCatcher news, according to Bloomberg, the lawyers for the bankrupt crypto lending company Genesis stated at a hearing on Wednesday that the company has extended the mediation period with creditors for the last time. Company lawyer Sean O'Neal told U.S. Bankruptcy Judge Sean Lane, "If we cannot achieve substantial progress on a deal in principle within the next two weeks, we believe we will not seek to further extend the mediation period." Therefore, negotiations must conclude by August 16.The lawyer indicated that if the parties fail to reach an agreement by August 16, Genesis will continue to implement its existing bankruptcy plan, but with certain modifications.

According to ChainCatcher news and a report by CoinDesk, the cryptocurrency lending platform BlockFi, which has filed for bankruptcy reorganization, has had its proposal accused of abusing bankruptcy rules, involving over $1 billion in disputed transactions.BlockFi plans to discuss this at a court hearing in New Jersey on July 13, but it faces opposition from Three Arrows Capital and the SEC. Three Arrows Capital claims that BlockFi owes it over $220 million and states that it has not been given the opportunity to contest the fraud allegations, while the SEC argues that the proposed terms for liquidating BlockFi and its management are too vague and broad (source link)

ChainCatcher news, the bankrupt crypto lending platform Celsius has submitted an updated bankruptcy plan, which includes the successful acquisition of its assets by the Fahrenheit consortium. This plan must be approved by the New York bankruptcy court overseeing the liquidation.David Adler, a lawyer representing a group of Celsius creditors, stated that the debtors have chosen to handle retail loan claims through a set-off process. Although the debtors are requesting repayment of loans (i.e., asking borrowers to perform), they have no intention of fulfilling their contractual obligations (i.e., returning collateral to borrowers). This proposed handling method almost violates consumer lending laws (both state and federal), and the temporary group of borrowers will oppose the plan. (Source link)

ChainCatcher news, according to sources cited by The Block, Genesis creditors are negotiating a prepackaged bankruptcy plan with Genesis, where creditors like Gemini will agree to provide a one to two-year payment tolerance period under the prepackaged bankruptcy plan. In exchange, creditors will receive cash payments and equity from Genesis's parent company, Digital Currency Group (DCG). Over the past few weeks, the creditors' committee has been privately negotiating with Genesis to finalize a Chapter 11 bankruptcy protection plan before filing. (The Block)