Kenne Michael 
According to a court filing on Sunday, the bankrupt cryptocurrency exchange FTX has modified its settlement proposal in response to the objection raised by the U.S. Trustee.
Despite denouncing the U.S. Trustee as the “sole objector to the Motion” and describing its attempt to “inject itself into a routine settlement process that is already adequately safeguarded by two different creditor committees,” FTX’s debtors have expressed their willingness to introduce modifications to address the concerns raised.
The most recent version of the proposal includes the inclusion of the U.S. Trustee as an officially informed party and a reduction from $10 million to $7 million in the cap on settled claims. In addition, the debtors will produce monthly reports on executed settlements. Before the claims procedure can continue, any objections from “informed parties” must be resolved or settled by court order.
The Official Committee of Unsecured Creditors and the ad hoc Committee of international consumers are in question. Before this, the U.S. Trustee opposed the initial motion, arguing that $10 million was too high to qualify as a “small” claim and lamenting the lack of adequate notice regarding the nature of these claims.
FTX, formerly the third-largest digital asset exchange in the world, filed for bankruptcy in November of the previous year.
