In a recent legal development, the cryptocurrency exchange FTX has applied to court to compensate its customers at estimated values of $16,871 per BTC, $1,258 per ETH, and $16 per SOL. This move, however, has been met with harsh criticism from FTX creditors, who have labeled it as another act of theft.
FTX debtors defend their compensation valuations, arguing they reflect “fair and reasonable” prices of the relevant cryptocurrencies. They claim that such a move is necessary to overcome potential obstacles in bankruptcy proceedings, highlighting the difficulty of fulfilling each claim for digital assets and the consequent delays in the case.
On the other hand, FTX has set a compensation price of $14.19 per AVAX token, while USDT, TUSD, and BUSD stablecoins are to be compensated close to their $1 values. Creditors of FTX are fiercely opposing the offer, with BnkToTheFuture CEO Simon Dixon urging customers to strongly resist the proposal.
The controversy stems from the perception of compensation amounts as undervalued, with creditors fearing that customers will not receive a fair share of their assets. FTX customers who reject the compensation plan have until January 11, 2024, to express their opposition. Creditors are advising the concerned customers to submit their objections in writing to the judge handling the bankruptcy case.
Bankruptcy proceedings often involve complex negotiations and contentious decisions regarding asset valuation and distribution. In the case of FTX, the dispute over cryptocurrency compensation adds an additional layer of complexity. The court’s final decision will determine how creditors and customers are compensated and may set a precedent for future crypto-related bankruptcy cases.
The situation with FTX underscores the importance for crypto investors to be informed about the legal and regulatory aspects of their chosen platforms and to remain vigilant. The crypto community is closely watching how the situation unfolds, as the outcome will not only affect FTX customers but could also have broader implications for how crypto assets are valued and compensated in bankruptcy proceedings.