FTX submitted a modified restructuring application to the court on December 26th, seeking to estimate the compensation for customer assets based on the “fair and reasonable” value as of the bankruptcy date, November 11th, 2022, in US dollars. The listed cryptocurrency at the time was Bitcoin, valued at $16,871 per coin.
Background:
FTX recovers 67% of debt! Ikigai Asset sells off $65 million: no point in waiting for restart
Supplementary background:
FTX profits $3 billion with SOL: Can creditors see but not touch?
Bankrupt cryptocurrency exchange FTX submitted a modified restructuring application to the court on December 26th, hoping to estimate the compensation amount of customers’ cryptocurrency assets based on the “fair and reasonable” value as of the bankruptcy date, November 11th, 2022. FTX emphasized that this move is to avoid unnecessary delays in the bankruptcy process. The FTX team stated that at the time, one BTC was only worth $16,871.
In the submitted application documents, FTX evaluated the value of several major cryptocurrencies. The current status of the main currencies is as follows:
BTC: $16,871 at the time, currently reported at $42,032, with a 149% increase.
ETH: $1,258 at the time, currently reported at $2,335, with an 85.6% increase.
SOL: $16 at the time, currently reported at $103, with a 543% increase.
AVAX: $14 at the time, currently reported at $39, with a 178% increase.
According to the documents, FTX used data from Coin Metrics to estimate the prices of cryptocurrency assets. All parties in the bankruptcy case must file objections by January 11th, and a hearing on the matter is scheduled for January 25th. The current document is awaiting court approval.
Igniting the anger of creditors, it is foreseeable that many creditors are strongly dissatisfied with this plan, believing that FTX’s plan is simply a theft. Prominent creditor Sunil Kavuri has even urged creditors to stand up and resist.
On the other hand, a group of FTX creditors called the “FTX 2.0 Alliance” has suggested that customers who oppose the latest proposal directly express their opinions by writing letters. The alliance specifically pointed out that this process does not require the involvement of lawyers, and anyone interested in this matter can write and send a signed letter to the bankruptcy court in Delaware. In addition, the FTX 2.0 Alliance has provided a letter template to make it easier for users who wish to express their opposition to do so.
Related Reports:
FTX liquidation team’s request for “extension of bankruptcy proceedings” rejected by judge: no more time dragging!
Former FTX executives “creating a new exchange”! Led by SBF, a key witness in the conviction: hoping to protect user assets this time
FTX restart prospects: SOL up 200% to over $60, FTT surges to $5.5; hopes for full compensation increase
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