Recently, several FTX creditors in Taiwan have received a letter from bankruptcy processing company Kroll. What does this thick stack of documents represent? It turns out that these are court-approved documents regarding the “valuation of claims based on bankruptcy prices,” which was reported by Chainnews at the end of 2023. These documents include the resolution and the claim prices of various currencies.
(
FTX cryptocurrency claim valuation based on “bankruptcy prices,” opposing clients must submit by 1/11
)
Letter from Kroll
Table of Contents
Toggle
Kroll sends claim conversion price summary
Extremely low claim prices
Equity tokens are equally dismal: NVIDIA (NVDA) is only 179
Creditors raise objections
This court resolution was submitted on December 27, 2023, and it agrees to establish the liquidation prices of various cryptocurrencies in FTX’s bankruptcy liquidation. (
The electronic files are also in Kroll’s document database
)
Advertisement – Continue scrolling for the rest of the article
The court stated that the debtor has the right to determine the value of the claim for any plan in Chapter 11 cases based on the value of digital assets and legal tender, and this value is based on the conversion table of digital assets attached to it.
Because this resolution is based on the market prices at the time of bankruptcy to calculate the cash value that the creditors can obtain, it has faced a lot of backlash. The prices of many currencies differ significantly from the present, except for FTT:
FTX conversion prices
January 15, 2024
BTC
16871
42590
ETH
1258
2535
BNB
286
313
SOL
16.24
95
XRP
0.37
0.57
ADA
0.34
0.53
AVAX
14.19
36.29
DOGE
0.082
0.081
TRX
0.055
0.11
If you previously held equity tokens of FTX, the liquidation values of NVIDIA (NVDA), MicroStrategy (MSTR), and Coinbase (COIN), which experienced significant increases last year, are also much lower than reality:
FTX conversion prices
January 16, 2024
NVIDIA (NVDA)
179
574
MicroStrategy (MSTR)
176
485
Coinbase (COIN)
30
130
On January 12, creditors have filed objections with the court overseeing FTX, stating that the current value of these assets should be appropriately evaluated to maximize the interests of the creditors. They also cited the significant price recovery of SOL as an example, which should benefit the creditors.
Furthermore, they protested against the resolution that considers FTT as “worthless” because FTT still has a certain market value at present, and the court has authorized the debtor to sell FTT. This is illogical and should be reconsidered.
FTX
Kroll
Bankruptcy court
Related reading
SEC Chairman warns of rampant violations in the cryptocurrency field, tweet flagged with community note: will only enforce regulations
Explained in detail: FTX Accelerated Compensation Plan – How to address the $9 billion compensation fund shortage?