Some FTX creditors have appealed to a U.S. bankruptcy judge to block the exchange’s proposal to base their crypto deposit values on 2022’s low market prices. This move comes as clients seek to benefit from the current upswing in cryptocurrency values.Â
The Official Committee of Unsecured Creditors supports the estimation of claims in digital assets, aiming to hasten the Chapter 11 process and simplify claim reconciliation.
The Debtors’ motion highlights that if the court considers cryptocurrency deposits outside the estate’s property, the appreciated crypto over $5 billion since filing must be returned to clients in kind, not utilized for paying administrative claims.
According to plan, FTX’s bankruptcy suggests compensating customers in U.S. dollars, fix to the crypto prices at its November 2022 bankruptcy. Given the recent market surge, customers argue this method undervalues their assets.
Sunil Kavuri, an FTX creditor activist, shared via X that his lawyers, Moskowitz and Boies, are challenging the debtor’s claim valuation method. Kavuri elaborated that the legal team insists on returning at least the crypto’s current value to customers, as property rights issues remain unresolved.
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