After thorough investigations, a shocking revelation has emerged regarding the significant amount of funds missing from FTX customer assets. However, there seems to be a beacon of hope on the horizon as FTX Trading Ltd, alongside its associated list of debtors, has proposed a settlement that could potentially refund the majority of lost crypto and financial assets back to the affected customers.On Monday, October 16, FTX debtors reached an agreement to settle the pending Chapter 11 court case, known as the “Customer Shortfall Case.” This resolution has granted FTX customers the possibility of recovering more than 90% of their missing assets by the end of Q2 2024. Furthermore, FTX debtors have proposed a substantial reimbursement of $9 billion for FTX.com and an additional $166 million for FTX.US.Scheduled for filing on December 16, 2023, this proposal involves the segregation of FTX debtors’ assets into three distinct portions. One portion will be allocated to benefit FTX.com, another portion to focus on FTX.US, while the third part will act as a general pool for any other assets.In a recent post from FTX’s official X (formerly Twitter) account, it is suggested that the proposal is well-positioned to be approved by the Bankruptcy Court, bringing favorable compensation to the victims of the crypto exchange failure.”If approved by the Bankruptcy Court, the settlement will create a special ‘Shortfall Claim’ to benefit customers, as previously proposed by the FTX Debtors in July, and facilitate an offer to eligible customers to settle customer preference exposure at an agreed amount,” the post explains.John J. Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, expressed his elation regarding this latest development. He acknowledged the significant value created by the debtors and their creditors in the face of what otherwise could have been a nearly total loss for customers. Ray also expressed his gratitude to the independent Board of Directors overseeing the case, recognizing their pivotal role during this crisis.Meanwhile, an FTX Deputy, Nishad Singh, who is a key witness in the fraud trial of FTX founder Sam Bankman-Fried, has made startling revelations during proceedings in a New York court. Singh attested to being aware of billions of dollars in missing customer funds and confronting Bankman-Fried about the alleged misappropriation of these assets to Alameda Research, a crypto trading firm co-founded by Bankman-Fried.According to a crypto-journalist on X, Singh expressed concerns about the former FTX CEO’s extravagant lifestyle and implied Bankman-Fried’s awareness of the accounting discrepancies pertaining to customer funds.Singh further informed the court that he had attempted to resign from the crypto exchange but was persuaded by Bankman-Fried to stay and help recover some of the lost customer funds. However, Singh has since pleaded guilty to fraud charges and is now cooperating with prosecutors in the Sam Bankman-Fried trial, aiming for a reduced sentence. In contrast, Bankman-Fried has pleaded not guilty and intends to vehemently contest the charges against him.While uncertainties and legal battles ensue, the proposed settlement offers a glimmer of hope to FTX customers who have been negatively impacted by this incident. As the case progresses, it is expected that justice will be served and FTX customers will regain their rightfully earned assets.Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.