FTX’s debtor submitted a modified Chapter 11 reorganization plan on December 16th. One key provision of the plan is to handle cryptocurrency claims based on their cash value at the time of bankruptcy filing. Due to the significant increase in cryptocurrency prices, this has sparked dissatisfaction among many creditors. The FTX 2.0 Alliance has proposed that customers who oppose this motion must send a letter to the judge handling the bankruptcy case by January 11th.
(
FTX Reorganization Plan Sparks Market Controversy: Cryptocurrency Claims Evaluated Based on “Bankruptcy Price”
)
Table of Contents
Toggle
Most digital assets have risen significantly, with a large difference from the bankruptcy price
Customers who disagree must file their opposition by January 11th
According to court documents dated December 27th, bankrupt FTX is seeking court approval to estimate its customers’ digital asset claims in US dollars.
Ad – Continue scrolling to keep reading
Although the prices of most cryptocurrencies have rebounded since the bankruptcy, creditors may still face potential losses according to the plan proposed by FTX. Chain News has also compiled the differences in major currencies, with SOL’s price differing by more than five times.
The exchange emphasizes that this action is crucial to prevent any obstacles in the bankruptcy process and adds:
Liquidating every claim related to digital assets is impractical and unnecessary, and it would inappropriately delay the bankruptcy process.
The FTX 2.0 Alliance, comprised of FTX’s creditors, suggests that customers who want to oppose this motion should send a letter to the judge handling the bankruptcy case. They emphasize that “anyone can send a signed letter to the Delaware Bankruptcy Court, no lawyer needed.”
The FTX 2.0 Alliance also provides a template and reminds customers who disagree with the motion to oppose the plan by January 11th.
FTX
Bankruptcy price
Further reading
US Prosecutor: SBF Case Not Seeking Retrial, Sentencing Hearing Set for March
SOL Surges Over Five Times Since FTX Bankruptcy, Creditors Could Gain an Additional $3 Billion?