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- FTX Debtors want customers to be paid the worth of their crypto assets as of the day the crypto exchange went bankrupt.
- The proposal, detailed in a new court filing, sets the value of the crypto assets creditors can claim as that of November 11, 2022.
- An approval will see customers receive an amount considerably lower than prevailing prices, given the crypto market’s recent resurgence.
Debtors of bankrupt cryptocurrency exchange FTX have proposed a new amendment to their bankruptcy plans which will see customers receive the value of their assets as at the time when the exchange collapsed.
Indeed, this amendment was detailed in a court filing in the United States Bankruptcy Court for the District of Delaware. According to the filing, any customer entitlement claim against the exchange intended to reimburse the holder will be based on the value as of November 11, 2022, the day the exchange filed for bankruptcy.
Furthermore, the amendment proposes that FTX customers can only make claims against the crypto asset’s value instead of the asset itself. As a result, the value will be determined by the asset price on the date of the collapse and not prevailing market rates.
This proposal follows an increase in cryptocurrency price, which has seen Bitcoin hit new highs and major tokens see massive price increases. In addition, FTX’s native token, FTT, has also surged considerably, rising over 264% this year. Should the plan be approved, FTX customers receive an amount considerably lower than prevailing prices.
In a series of tweets on X, the committee of unsecured FTX creditors stated that the reorganization plan is based on an agreement reached between the Debtors, itself, and other creditor stakeholders.
Furthermore, the committee disclosed that the proposals will be revised with inputs from all the stakeholders. “Both documents will be further revised, with input from the Committee and other stakeholders, for events that occur and agreements reached between now and the date of the hearing to approve the Disclosure Statement,” the committee tweeted.
FTX Debtors have filed the reorg. PlanMost importantly they have ignored FTX TOS that states Digital Assets are the property of Users and not FTX TradingThe plan says that Digital Assets are valued at Petition Date conversion rates (prices) pic.twitter.com/WTj07nlOP5— Sunil (FTX Creditor Champion) (@sunil_trades) December 16, 2023
Expectedly, the proposal has since drawn criticism from customers of the exchange. According to an X user, the amended plan ignores FTX terms of service, which “states that Digital Assets are the property of Users and not FTX Trading.”
The post FTX Debtors Want Customers Paid Value of Assets as of November 2022 appeared first on Coin Edition.