FTX Hits Out at Profit-Hungry Crypto Traders Riled by Draft Reorganization Plan
- Spat erupts between FTX’s administrators and creditor panel
- Administrators say panel may be willing to ‘gamble’ assets
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The administrators of bankrupt crypto exchange FTX criticized traders and market makers on a key creditor panel, accusing them of seeking control of assets regardless of the impact on other stakeholders.
The dispute flared in the wake of last month’s draft reorganization plan from FTX’s new management team under Chief Restructuring Officer John J. Ray III. The official committee of unsecured creditors alleged a lack of consultation and said FTX is missing out on better returns from its vast cash and token holdings.