FTX borrowers assess the value of crypto claims based on the market value on the day of the claim
Debtors of now-defunct cryptocurrency exchange FTX have filed an amended Chapter 11 reorganization plan that will set the value of customer asset claims back to when the exchange was dissolved in November 2022.
In a recent filing in the United States Bankruptcy Court for the District Court of Delaware, the debtors indicated that any customer claims aimed at indemnifying the holder would be based on the value as of the date of the Nov. 11 bankruptcy filing. , 2022.
The value of the claim is determined by using the conversion rates specified in the table for converting the value of the crypto asset into cash.
However, since the bankruptcy filing, the value of the crypto has increased. Bitcoin (BTC) was at $17,036 at the time of filing, but at the time of publication, the price is $42,272.
Meanwhile, last month, On November 30, FTX was authorized to sell approximately $873 million in trust assets, with the proceeds intended to pay creditors for the broken-down transaction.
Related: Sam Bankman-Fried's lawyer says FTX fraud trial was “almost impossible” to win: Report
Joseph Moldovan, chairman of business solutions at Morrison Cohen – a New York-based law firm – previously explained the complexities of the FTX bankruptcy to Cointelegraph.
“What's unusual about the FTX bankruptcy is that the borrowers are complex entities with large amounts of debt,” he said.
The FTX Debtors filed for refiling. Plan
Above all, they ignore the FTX TOS which states that the digital assets belong to the users, not FTX Trading
The plan says digital assets will be assessed at conversion rates (prices) on the day of the appeal pic.twitter.com/WTj07nlOP5
— Sunil (FTX Lending Champion) (@sunil_trades) December 16, 2023
Meanwhile, on December 7, Cointelegraph reported that the temporary committee of FTX 2.0 customers proposed to improve the reorganization plan to maintain a balance between the interests of stakeholders.
On the other hand, in recent times there has been significant scrutiny of crypto asset activities related to both FTX and Alameda Research.
On December 9, reports emerged that wallets linked to these defunct entities had transferred digital assets worth $23.59 million to multiple crypto exchanges.
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