FTX filed for bankruptcy more than a year ago, but the soap opera surrounding this crypto exchange is not over yet. FTX’s creditors recently filed an amended restructuring plan, Chapter 11. And this plan caused quite a stir. The value of the client’s rights to the assets is determined at the time of the invasion. This means that current prices are used.
How are complaints from affected customers assessed?
According to the plan’s most recent filing with the United States Bankruptcy Court for the District of Delaware, customer claims against FTX will be assessed based on market value as of November 11, 2022, the date FTX filed the bankruptcy petition. The value of a claim is determined by converting cryptocurrency into cash using special conversion tables.
This may seem logical and simple, but for many people it is not. A customer entitled to Bitcoin worth $17,036 would lose at the current price of $42,272.
Since the bankruptcy of FTX, the prices of various cryptocurrencies have risen sharply. This means that many people are now expecting a payout well below the current market value of their cryptocurrency. For many investors who expected full compensation, this is a tough pill to swallow.
Find a balance between the interests of everyone involved
In November 2022, FTX received approval to sell approximately $873 million in trust assets. The target? To pay back the creditors of the collapsed stock market. This is an important step toward solving the financial mess left by FTX.
However, the story of FTX is far from over. On December 7, it was discovered that the FTX 2.0 Client Ad Hoc Committee had proposed a revision to the restructuring plan. The aim of this research is to find a balance between the interests of all involved.
But there’s more. Much attention is being paid to cryptocurrency activities related to FTX and Alameda Research. On December 9, it was revealed that wallets belonging to these failed companies had transferred $23.59 million in digital assets to various cryptocurrency exchanges.
The FTX case is very complex and will keep the crypto community busy for a long time. Even when the legal and financial mysteries are solved, the lesson remains clear: caution is advised in the world of cryptocurrencies.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
