May 10, 2024

Unchained Podscast: How the FTX Estate Is Socializing the Gains of One-Third of Creditors

Unchained invited Thomas on to discuss the new FTX Bankruptcy disclosure statement and what it means for customer creditors.

Time Stamps:

0:00 Introduction

01:41 The significance of the recently filed plan

03:40 Why full crypto-denominated compensation for creditors was unrealistic

08:26 Inter-creditor disputes since some assets have performed much better than others

10:07 The definition and impact of a "cramdown" in this scenario

12:19 Reasons the first draft of the bankruptcy plan came together so quickly

15:09 An outline of the plan, differentiating small from large creditors

17:07 What it means that the bankruptcy plan is to “waive all preferences”

18:23 Criticisms of the plan and if larger investors could receive more

22:53 Whether the FTX estate made mistakes in selling assets that are now at higher values

24:51 Why FTX chose not to reboot its platform

26:02 Potential conflicts with Sullivan & Cromwell

28:19 Tax implications for non-US taxpayer creditors

31:13 Method of claims distribution

33:02 Creditors' views on the proposal and the next steps in the case