Cision PR Newswire

Parties Agree to Work Together to Maximize Recoveries for FTX Stakeholders

WILMINGTON, Del., Jan. 31, 2025 /PRNewswire/ -- FTX Trading Ltd. (d/b/a. FTX.com) and the FTX Recovery Trust (collectively "FTX") today announced that they have reached a settlement with venture capital firm K5 Global ("K5"), resolving the June 2024 lawsuit brought by FTX.

"Today's settlement reflects another mutually beneficial solution to the broader issues raised during the collapse of the FTX group," said John. J. Ray III, Chief Executive Officer of the FTX Recovery Trust. "We are pleased to have reached an agreement with K5. Having spent extensive time with Michael Kives and Bryan Baum, co-founders of K5, it is clear that K5 is a bright spot in the FTX portfolio, and the expected strong performance of their investments will be a key driver in the recovery efforts for our stakeholders."

K5 Global co-founders Michael Kives and Bryan Baum said in a joint statement, "We appreciate the extraordinary professionalism and collaboration of John Ray and are grateful to have reached this settlement. We are proud of the role that K5 will play in the recovery process for all FTX stakeholders."

Additional Information about FTX Recoveries and Distributions

As previously announced, FTX's U.S. Bankruptcy Court-approved Chapter 11 plan of reorganization (the "Plan") became effective on January 3, 2025. The initial distribution record date for holders of allowed claims in the Plan's convenience classes (the "Initial Distribution") was also January 3, 2025. The Initial Distribution is expected to occur within 60 days of January 3, 2025, with participation subject to know-your-customer and other distribution requirements. U.S. Bankruptcy Court filings, including the Plan and other documents related to the U.S. Bankruptcy Court proceedings, are available at https://cases.ra.kroll.com/FTX/.

About K5

K5 Global is a venture capital firm and incubation studio that invests in category defining companies at all stages. The firm was founded in 2018 by Michael Kives and Bryan Baum.

Advisors

The FTX Recovery Trust is represented by Sullivan & Cromwell LLP as legal counsel and is assisted by Alvarez & Marsal North America, LLC as financial advisor, Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel and Landis Rath & Cobb LLP as Delaware counsel.

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SOURCE FTX