Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
FTX users ask court to reject repayment plan based on Nov. 2022 values

FTX users ask court to reject repayment plan based on Nov. 2022 values

BlockworksBlockworks2024/01/19 22:49
By:Blockworks

Under the proposed plan, the FTX bankruptcy estate would settle up with customers by repaying them in US dollars based on the value of their crypto assets in November 2022

Former FTX customers are asking a judge to reject the bankrupt exchange’s proposed reimbursement values for cryptocurrencies, arguing that the plan would cost them significant profits. 

Under the proposed plan, the FTX estate would settle up with customers by repaying them in US dollars based on the value of their crypto assets in November 2022. 

But cryptocurrencies have rebounded since FTX’s collapse — bitcoin ( BTC ) has gained more than 160% alone — and exchange clients argue a payout based on proposed strike prices is unfair. Under FTX’s terms of service, one customer pointed out, the client is the owner of the digital asset, not FTX, so fiat reimbursement is unacceptable. 

Read more: FTX debtors push back against $24B IRS claim

“Having been victims of FTX once, I implore you to intervene and prevent the ongoing second act of theft taking place before our very eyes,” one former FTX retail client wrote Thursday to Judge John Dorsey, who is overseeing the bankruptcy proceedings in Delaware. 

Under the current plan, customers will be reimbursed around $16 per Solana ( SOL ) token, and $1,260 per ether ( ETH ). As of Friday, SOL was currently trading at about $94 and ETH was sitting near $2,450. 

FTX argues that under bankruptcy law, values offered should be based on the date of bankruptcy. Plus, according to the debtors, liquidating each customer’s holdings on an individual basis is a lengthy process. 

Read more: Bankman-Fried’s crypto portfolio would be up billions this year — thanks to Solana

More than 150 former exchange clients not represented by individual counsel had filed objections regarding the plan before the deadline on Thursday. 

The court is scheduled to rule on the proposed prices during a hearing on Jan. 25. 

Don’t miss the next big story – join our  free daily newsletter .

Tags
  • bankruptcy
  • FTX
  • Sam Bankman-Fried
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Solana-based social graph protocol Tapestry raises $5.75 million in Series A funding

Tapestry raised $5.75 million in a Series A round co-led by Union Square Ventures and Fabric Ventures.Tapestry is a Solana-based social graph protocol designed to create an ecosystem of applications with social features.

The Block2025/01/16 19:00

The Daily: Trump 'receptive' to an 'America-first' crypto reserve, XRP hits new all-time high and more

President-elect Donald Trump is open to creating an “America-first” crypto reserve prioritizing U.S.-based coins like USDC, SOL and XRP, the New York Post reported, citing sources familiar with the matter.XRP hit a new all-time high of around $3.39 via major crypto exchanges on Thursday for the first time since January 2018, following a 16% surge in 24 hours and a 455% rise over the past quarter.A Litecoin ETF is the “most likely” next spot crypto ETF to be approved in the U.S., according to Bloomberg anal

The Block2025/01/16 19:00

BTC breaks through $99,000

Cointime2025/01/16 18:01