After the U.S. Trustee objected to an earlier request, bankrupt cryptocurrency exchange FTX changed its motion for settlement, according to a court document made on Sunday.
Although the FTX debtors criticised the U.S. Trustee as the “sole objector to the Motion” and accused it of trying to “inject itself into a routine settlement process that is already adequately safeguarded by two different creditor committees,” they claimed they were putting out changes in an effort to allay the objections.
The latest plan will lower the maximum settlement amount for claims covered by the procedures from the earlier $10 million to $7 million and will see the debtors add the U.S. Trustee as a noted party. Debtors must submit monthly reports of settlements that have been completed. Before the claim process may move further, any objections from the “noticed parties” must be settled through a court order.
The Official Committee of Unsecured Creditors and the Ad Hoc Committee of International Customers are the two creditor committees.
Without even giving appropriate notice of the claims’ nature, the U.S. Trustee had opposed to the prior motion, claiming that $10 million was far too high to be considered a “small” claim.
In November of last year, FTX, formerly the third-largest exchange for digital assets worldwide, declared bankruptcy.