FTX's Latest Court Update: Cryptocurrency Claims Assessment, Decision on Relaunch by Mid-December

The FTX bankruptcy restructuring team has released the latest court update, including: the stalking horse bid will be announced on December 16; cryptocurrency claims assessment will take place in November; and customer names will remain anonymous, with natural persons permanently anonymous.

FTX Court update.

1. Stalking horse bid to be announced until Dec 16
2. Crypto claim value estimation motion in November
3. Customer names stay redacted (permanently for natural persons)

Pt 2: Expect Nov 2022 dollarisation. Customers who disagree should prepare to object.

— FTX 2.0 Coalition (@AFTXcreditor) October 24, 2023

Stalking Horse Bid to Be Revealed on 12/16

A stalking horse bid is when a buyer chosen by a company applying for bankruptcy protection makes an initial publicly disclosed bid to acquire the company, with the aim of maximizing the value of the bankrupt company's assets or avoiding lower bids. According to previous reports, after the end of the second round of bidding, there are only three creditors left. The FTX bankruptcy reorganization team will announce the final list on 12/16.

According to a report by Bloomberg, Kevin M. Cofsky of FTX's investment bank, Perella Weinberg Partners, stated in court on Tuesday that the company will make a decision before mid-December. Cofsky mentioned that FTX is negotiating with investors on potentially binding offer details but did not disclose the bidders' names. Options include:

• Selling the entire exchange, including a valuable list of over 9 million customers
• Bringing in partners to help restart the exchange
• FTX is also considering restarting the trading platform on its own

Cryptocurrency Claims Evaluation to Take Place in November

FTX lawyer Andrew Dietderich stated in court that FTX and its main creditor group have preliminarily resolved some of the most contentious disputes in the case, allowing the company to submit detailed payment plans in December.

During bankruptcy proceedings, such plans typically provide creditors with estimates of the anticipated recovery amount expressed as a percentage. However, Dietderich mentioned that the recovery percentage will partly depend on how much value FTX can derive from the potential sale or restart of the exchange.

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The FTX bankruptcy reorganization team also reminded that if customers do not agree to claim in USD, they must file objections with the court within the specified objection period.