FTX debtors submit $16,871 worth of Bitcoin for creditor claims
FTX's creditors issued claims against US dollar cryptocurrency prices and foreign currency clients with the lost exchange.
In a Dec. 27 filing in U.S. Bankruptcy Court for the District of Delaware, FTX's creditors said they sought “fair and reasonable value” for user claims based on digital assets when the exchange collapses in November 2022. The proposal is for about 500 assets in fiat and cryptocurrency, based on what they had at the time of FTX's bankruptcy filing.
According to the proposed price, Bitcoin (BTC) applicants can receive $16,871 per coin, Ether (ETH) at $1258, and Binance Coin (BNB) at $286. The table does not include the estimated price of FTX Token (FTT) but includes the prices of used tokens, tokenized stocks, spot derivatives and crypto futures.
“[T]”The court has broad discretion to choose whatever method it deems most appropriate to the particular circumstances for estimating the presumption of a claim based on digital assets,” the submission said. “[C]We consider all the circumstances and circumstances surrounding our claims, but do not seek to estimate claims with mathematical accuracy.
The debtors added:
“[T]he Plan offers to convert the value of the Digital Asset into cash from the date of claim on the Digital Asset using the rates set forth in the Digital Asset Conversion Table and calculate cash distributions.
According to the filing, the debtors used data from Coin Metrics to estimate the value of the digital asset. Bankruptcy parties have until January 11 to file their objections for a hearing on the case set for January 25. A motion seeking an order to assess the creditors' claims based on the proposed valuation is pending court approval.
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Many X – ex-Twitter – users claiming to be FTX users protested the proposed plan. Customers of the defunct crypto exchange have been unable to access their funds since November 2022, but some have been able to sell their claims to third parties for less than their full value.
“What a scam, honestly,” X user Truddles responded to the move. “But this whole thing is going to go on for another 10 years with an unknown outcome and billions more for a lawyer. I'd rather take what they have to offer and more.” [sic] It's on the market.”
If the court approves the plan, many crypto holders will lose the benefits from certain tokens. After the FTX crash, the price of Bitcoin has risen more than 150%, reaching $42,452 at press time. The price of Ether rose more than 87%, from $1,258 to $2,354.
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