FTX Cryptocurrency Claims Evaluated at “Bankruptcy Market Value,” Opposition to Customer Deadline of 1/11 for Submission
FTX submitted a modified Chapter 11 restructuring plan for its debtor’s assets on 12/16. One key provision of the plan is to handle cryptocurrency claims based on their cash value at the time of the bankruptcy filing. Due to the significant increase in cryptocurrency prices, this has caused dissatisfaction among many creditors. The FTX 2.0 Alliance has suggested that customers who oppose this motion should write to the judge overseeing the bankruptcy case before 1/11.
FTX Restructuring Plan Sparks Market Controversy: Cryptocurrency Claims Assessed Based on “Bankruptcy Prices”
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Most digital assets have increased significantly, resulting in a significant difference from bankruptcy prices
Customers who disagree must file opposition before 1/11
According to court documents dated December 27, bankrupt FTX is seeking court approval to estimate its customers’ digital asset claims in US dollars.
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Despite the price recovery of most cryptocurrencies since the bankruptcy, under the plan proposed by FTX, creditors may still face potential losses in terms of potential gains. Chain News has also compiled the differences in major cryptocurrencies, with SOL’s price differing by more than five times.
The exchange emphasizes that this action is crucial to prevent any obstacles in the bankruptcy process and adds:
It is impractical and unnecessary to liquidate every claim related to digital assets, and it would inappropriately prolong the bankruptcy process.
The FTX 2.0 Alliance, composed of FTX creditors, suggests that customers who wish to oppose this motion should write to the judge responsible for the bankruptcy case. They emphasize that “anyone can send a signed letter to the Delaware Bankruptcy Court, no attorney required.”
The FTX 2.0 Alliance also provides a template and reminds customers who disagree with the motion to oppose the plan before January 11.
FTX
Bankruptcy prices
Further reading
US Prosecutor: No Intention to Seek Retrial in SBF Case, Sentencing Hearing Scheduled for March
SOL Surges Over Five Times Since FTX Bankruptcy, Creditors May Gain Additional $3 Billion?
