FTX debtors assess the value of crypto claims based on petition date market prices
In a revised Chapter 11 reorganization plan, FTX debtors state that crypto claims by customers will be assessed using a conversion table, with a valuation based on the petition date.
The debtors of the now-defunct cryptocurrency exchange FTX have filed an amended Chapter 11 reorganization plan indicating the value of customer asset claims will be retroactively set to the time when the exchange collapsed in November 2022.ย
In a recent courtย filingย in the United States Bankruptcy Court for the District of Delaware the debtors outlined that any customer entitlement claim against the exchange aimed at compensating the holder will be based on the value as of the date the exchange filed for bankruptcy on November 11, 2022.
Meanwhile, last month, on November 30, FTX was approved to sellย approximately $873 millionย of trust assets, with the proceeds intended to repay creditors of the collapsed exchange.
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Related:ย Sam Bankman-Friedโs lawyer says FTX fraud trial was โalmost impossibleโ to win: Report
Joseph Moldovan, chair of business solutions, restructuring, and governance practices at Morrison Cohen โ a New York-based law firm โ previously explained to Cointelegraphย the complexities of the FTX bankruptcy.
"Whatโs most unusual about the FTX bankruptcy is that the debtors are complex entities with significant amounts of debt," he stated.
Meanwhile, on December 7, Cointelegraph reported that the FTX 2.0 Customer Ad Hoc Committee proposed to revise the reorganization plan toย maintain a balance among stakeholder interests.ย
On the other hand, there has been significant scrutiny of the activities ofย crypto assets associated with both FTXย and Alameda Research in recent times.
On December 9, reports revealed that wallets linked to these defunct entities transferred digital assets worth $23.59 million to multiple crypto exchanges.
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