The Block Crypto News11 minutes ago

Published on June 25, 2024 20:32 GMT+00:00edited on June 25, 2024 20:34 GMT+00:00

Bankrupt FTX is gearing up for creditors to vote on a reorganization plan following the catastrophic fall of the crypto exchange almost two years ago.

During a bankruptcy hearing on Tuesday, lawyers for FTX and creditors debated a disclosure statement — a document that gives creditors more information to make a decision on the exchange's reorganization plan. Judge John Dorsey of the U.S. Bankruptcy Court of Delaware would have to approve of the plan and the disclosure statement, then creditors would vote on it before a confirmation hearing slated for later this year.

FTX revealed its reorganization plan in May and said it planned to give 98% of its creditors at least 118% of allowed claims. Creditors with allowed claims below $50,000 will be eligible for the 118% compensation upon court …