TX is one of the largest bankrupted cryptocurrency exchange. Fortunately it has achieved notable progress in recovering its assets as it has found two more creditors with whom it has signed the settlement agreements to potentially return up to $21 million.
Evolve Bank Settlement
The acquisition of the assets of an FTX affiliate will be accompanied by the repurchase of about $12.77 million from Evolve Bank. The bank will relinquish any present and future rights of recourse against FTX to speed up the asset recovery process and to avoid protracted legal processes.
A brief on Silicon Valley Community Foundation Agreement
In another settlement, FTX plans to seek $8. 57 million and approximately 35,000k FTT tokens which were gifted by former execs Nishad Singh and Caroline Ellison in December last year. The foundation had sold part of such tokens earlier while retaining a large number in case of future recoveries.
Legal Proceedings
Both settlements are contingent on court approval and there will be a hearing on November 20. Some of these creditors are in the process of reaching out for settlements with the team at FTX’s bankruptcy, and FTX’s team is approaching this in a way that would ensure they recover as much from the creditors as possible while incurring as little in legal fees as possible.
FTX Settlements: Creditor Recovery Path
These settlements show a continuative strategy of FTX for obtaining assets and compensating damaged creditors, which is a significant deal in the process of solving the company’s multifaceted financial consequences.
