Small creditors put at risk by latest FTX bankruptcy development

0

The transfer of the bankruptcy claim from FTX EU Ltd. to FTXCREDITOR, LLC, could have significant impact on stakeholders.

A significant claim against FTX EU Ltd. — previously known as K-DNA Financial Services Ltd —has been transferred to FTXCREDITOR, LLC, in the latest development in the FTX bankruptcy case. The transfer has the potential to accelerate all further proceedings but also presents risks to smaller creditors.

According to the documents filed in the U.S. Bankruptcy Court, District of Delaware on May 15, the claim is part of the ongoing Chapter 11 proceedings — previously held against FTX EU Ltd.

The transfer was conducted under the rules required by the Federal Rules of Bankruptcy Procedure, particularly Rule 3001(e)(2), which deals with claims transfers.

Read more

Leave a Reply

Your email address will not be published. Required fields are marked *