Debtors of the now-defunct cryptocurrency exchange FTX have filed an amended Chapter 11 plan of reorganization that will see the value of customers’ asset claims set retroactively to the time of the exchange’s collapse in November 2022.
In a recent statement of claim filed in the U.S. Bankruptcy Court for the District of Delaware, the debtors outlined that any customer claim against the exchange seeking to compensate the holder will be based on the value at the time of the exchange’s bankruptcy filing on November 13th. 11. 2022.
If the plan is approved, the value of a claim will be determined by the value of the crypto asset in cash using conversion rates provided in a conversion table.
Court filing in U.S. Bankruptcy Court. Source: Kroll
However, there has been an increase in crypto prices since the bankruptcy filing. Bitcoin (BTC) was valued at $17,036 upon filing, but was priced at $42,272 at the time of publication.
Meanwhile, on November 30, FTX was approved to sell approximately $873 million in escrow assets, with the proceeds intended to repay the collapsed exchange’s creditors.
Related: Sam Bankman-Fried’s lawyer says it was ‘almost impossible’ to win FTX fraud trial: report
Joseph Moldovan, chairman of business solutions, restructuring and governance practices at Morrison Cohen – a New York-based law firm – previously explained the complexities of the FTX bankruptcy to Cointelegraph.
“The most unusual thing about the FTX bankruptcy is that the debtors are complex entities with significant debt,” he explained.
FTX Debtors have filed for restructuring. To plan
Most importantly, they ignored the FTX Terms of Service, which states that digital assets are owned by users and not FTX trading
The plan states that digital assets will be valued at the conversion rates (prices) on the application date. pic.twitter.com/WTj07nlOP5
– Sunil (FTX Creditor Champion) (@sunil_trades) December 16, 2023
Meanwhile, Cointelegraph reported on December 7 that the FTX 2.0 Customer Ad Hoc Committee proposed revising the restructuring plan to maintain a balance between stakeholder interests.
On the other hand, the activities of crypto assets related to FTX and Alameda Research have been under intense scrutiny recently.
On December 9, reports revealed that wallets associated with these defunct companies transferred $23.59 million worth of digital assets to multiple crypto exchanges.
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