FTX managers unveil new plan to pay creditors
It is proposed to estimate the amount of claims according to the cryptocurrency exchange rates at the time of bankruptcy
18.12.2023 - 08:20
183
2 min
0
FTX managers have unveiled a new payment plan to the clients of the bankrupt crypto exchange. It assumes the return of funds in cash after the liquidation of digital assets under the control of the company. The amount of claims is proposed to be assessed at the rates of cryptocurrencies at the time of the bankruptcy filing on November 11 last year. However, since then, the exchange rates of most assets have doubled or more, which means multi-million dollar losses for users. For example, at the time of FTX’s collapse, bitcoin was trading at around $17 500, while the current rate at the time of writing is $41 050. Hence, the loss to creditors will be ~$23 550 per BTC.
Certain categories of creditors will have the opportunity to vote on the plan before it is finalized and submitted for evaluation by the bankruptcy judge. Managers and lawyers for the exchange say the plan is designed to achieve the fairest and most favorable outcome for all creditors and stakeholders.
One FTX creditor noted that the plan violates the exchange’s user agreement, which states that digital assets are the property of customers.
Bloomberg noted that the new plan does not contain information about the relaunch of the platform, although the managers said they would provide it by mid-December.
It also became known that from August through November, FTX spent $118,1 million on lawyers from Alvarez and Marshall, Sullivan & Cromwell, AlixPartners, and others. That’s about $1,3 million a day or $53 000 an hour. Paying them also reduces the amount of funds that will be distributed to users and creditors.
Earlier this month, FTX also challenged the US Internal Revenue Service’s $24 billion claim. Through the court, it demanded that officials explain how such an amount was generated.
Useful material?
Telegram 
Twitter Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Cryptocurrency rates
-
Bitcoin
$97 738
BTC
+0.22%
-
Ethereum
$3 284.97
ETH
-1.73%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.4
XRP
+24.04%
-
Dogecoin
$0.393632
DOGE
+1.32%
-
Cardano
$0.887903
ADA
+11.03%
-
Bitcoin Cash
$475.04
BCH
-3.73%
-
Polkadot
$6.03
DOT
+1.7%
-
Stellar XLM
$0.288367
XLM
+19.3%
-
Litecoin
$89.13
LTC
-0.87%