FTX Dockets

Judge Dorsey has entered an order approving the Global Settlement Agreement with the Voyager estate as motioned. $130m of claims asserted by Voyager against the FTX estates are deemed withdrawn and expunged. $5m held in escrow by Voyager will be released to Voyager and the $445m reserve held by Voyager will be released to Voyager. Previously, on April 9, 2024 at docket no. 11548 Debtor’s counsel for FTX filed a motion to authorize entry into a global settlement with Voyager Digital estate.

FTX debtors liquidated $1.89b in crypto in March 2024 under their previous order for the sale or transfer of certain digital assets. This brings the end of month cash balance to $8.4b in March. When the debtor receives payment on the sale of Anthropic preferred shares, the estate will have approximately $9.2b in cash for creditors. The estate also recovered $.62m from the sale of venture assets and dissolution of two corporate entities. The liquid estate assets stand at $8.41b in cash, $1.74b in crypto (valued as of the petition date). We estimate an end of March crypto markup at market prices to be $2.8b, giving an estimated estate asset balance of $12.98b.

On April 8, 2024 at docket no. 10348 Judge John Dorsey entered an order authorizing the sale of FTX Trading, Ltd’s Series B Preferred Shares in Anthropic, PBC. Perella Weinberg led the sale of the assets for a gross price of $884,109,327 to twenty four purchasers. The sovereign wealth fund of Abu Dhabi acted as the cornerstone investor, purchasing 56.6% of the shares available for approximately $500m USD. Other prominent purchasers include Jane Street Global Trading ($100m), Fidelity Management & Research Company ($45m) and the Ford Foundation ($5m). FTX Debtor Clifton Bay Investments LLC originally invested $500m in a modified simple agreement for future equity in October, 2021 which was subsequently converted to 44.5m of Series B Preferred Stock in May, 2022. Perella Weinberg earned a 1.75% fee on the transaction in accordance with their retention letter, netting a $15,471,913.22 transaction fee.

An exmainer is appointed. No later than 60 days from the entry of this order the examiner shall file a report that (1) summarizes the investigations conducted by the Debtors, the committee, and third paries, summarizes the findings/status of the investigations, and make recommendations for additional investigations. For any additional investigations the examiner may propose a scope, duration, cost, and rationale for further investigation. The report must investigation: the appointment of Sullivan and Cromwell as debtors counsel, employees involved in fraud, whether FTT was used to inflate the value of FTX or not. The budget for the examiner is $1.6m, including any professional fees.

Order - Extend exclusivity period to file a plan and solicit acceptances. The exclusive filing period is extended 69 days, until May 13, 2024 and the exclusive solicitation period is extended for 38 days, until July 11, 2024. The debtor previously filed a motion seeking a fourth extension to the exclusivity period. They seek an additional 69 days to their exclusive filing period and an extra 38 days to their exclusive solicitation period. The proposed new deadlines to file and solicit a plan are May 13, 2024 and July 11, 2024, respectively. The Motion to extend specific mentions that the Debtors antipate paying third party customers and general unsecured creditors 100% of their allowed claims over time, measured at petition time value and subject to voluntary subordination of large government claims. Since the previous extension to exclusivity the debtor has accomplished: 1) a global settlement with FTX Digital Markets and the joint liquidators of such and 2) progressed toward a consensual agreement with FTX Australia.

FTX Europe AG is authorized to enter into and perform under a Share and Asset Purchase Agreement with Patrick Gruhn, Robin Matzke, Lopem Ipsum RM UG and CredoMedia GmbH. The purchaser will receive 100% of the share capital of FTX EU Ltd., FTX Switzerland GmbH, FTX Trading GmbH, FTX Certificates GmbH, and FTX Structured Products AG. The purchaser will receive certain minority interests in non-debtor entities as well. The purchaser wiill also receive FTX Crypto Services Ltd. The FTX Europe subsidiaries Chapter 11 cases will be dismissed.

Motion - approve compromise with Blockfi. Global settlement with Blockfi grants Blockfi a partially secured claim against FTX in the amount of $250m with the remainder of their loan claim allowed as a general unsecured claim ($439.3m and $185.2m). In exchange Blockfi has agreed to bring over $600m of sales proceeds from the Robinhood Markets, Inc. Class A shares which was collateral for the BlockFi loans. BlockFi will also release certain jointly held Solana and Serum tokens worth $100m.