TechFlow news — Latest filings in the FTX bankruptcy case reveal objections from the U.S. Trustee and certain creditors regarding the exchange's revised reorganization plan. U.S. Trustee Andrew R. Vara outlined ten major flaws in the proposal, focusing on overly broad legal immunity provisions, unequal compensation for creditors, and the refusal to cover costs related to data breaches.
Vara emphasized that customers in the "convenience" category would receive a lower recovery rate solely due to their smaller claim amounts.
Meanwhile, Sunil Kavuri, representing the largest group of FTX creditors, also filed an objection, criticizing the plan's immunity clauses as excessively broad and calling for a mechanism of in-kind repayments to prevent taxable events for creditors.
The confirmation hearing is scheduled for October 7 Beijing time, and no further objections are expected at this stage. These objections could significantly impact FTX's restructuring process.
