Executive summary: Organizations that return funds to FTX’s bankruptcy estate may be eligible to become creditors and potentially receive full repayment, but should seek legal advice before agreeing to any settlements.
Key points:
Successful avoidance actions typically allow the returning organization to become an unsecured creditor for the returned amount.
FTX’s reorganization plan estimates full recovery for general unsecured claims.
Organizations should consult lawyers, as returning funds may be unnecessary if it wouldn’t benefit other creditors.
Regulatory restrictions or prior agreements could potentially prevent non-profits from becoming creditors.
Organizations that have already agreed to settlements may have waived their right to become creditors.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, andcontact us if you have feedback.
Executive summary: Organizations that return funds to FTX’s bankruptcy estate may be eligible to become creditors and potentially receive full repayment, but should seek legal advice before agreeing to any settlements.
Key points:
Successful avoidance actions typically allow the returning organization to become an unsecured creditor for the returned amount.
FTX’s reorganization plan estimates full recovery for general unsecured claims.
Organizations should consult lawyers, as returning funds may be unnecessary if it wouldn’t benefit other creditors.
Regulatory restrictions or prior agreements could potentially prevent non-profits from becoming creditors.
Organizations that have already agreed to settlements may have waived their right to become creditors.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, and contact us if you have feedback.