Kenne Michael 
The ongoing bankruptcy case of the cryptocurrency exchange includes essential updates, including a request to initiate a litigation claims process to resolve the aftermath of the exchange’s collapse, as stated in the filing.
A court order issued on August 18 has resolved nine of the fifteen items on the submitted agenda, rendering them unnecessary for the upcoming hearing. This leaves six crucial issues that require resolution, including a settlement procedure proposal and the most recent case status.
The hearing will address various aspects of FTX’s Chapter 11 bankruptcy case, which was filed on November 11, 2022, following a significant decline in the exchange’s operations. Accusations of fraud and improper utilization of client funds have been directed at the exchange, its affiliated entities, and its founder, Sam Bankman-Fried.
The agenda for the hearing includes updates on the bankruptcy case, a petition to formalize protocols for resolving litigation claims related to the company’s demise, and updates on ongoing legal proceedings against insiders, including Bankman-Fried.
Prior to this, FTX and Genesis settled claims related to their respective bankruptcies. Genesis agreed to pay $175 million to FTX’s trading subsidiary, Alameda Research, and released any claims against the exchange’s estate.
FTX has now revised its petition and is requesting bankruptcy court approval for simplified mechanisms to settle minor claims against the insolvent cryptocurrency exchange.
The initial motion aimed to resolve claims worth up to $10 million. However, it faced opposition from the U.S. Trustee, who argued that the amount was excessive and lacked adequate creditor oversight.
The upcoming court session will evaluate the contentious settlement motion and provide a comprehensive update on the bankruptcy and related adversarial proceedings.
FTX and its creditors have filed lawsuits against former executives, investors, and collaborators to recover assets. Following this news, FTT has experienced an increase of more than 5 %.