There are new developments related to FTX, the second largest cryptocurrency exchange of its time, which declared bankruptcy in November 2022. It will become clear next year how long SBF will be in prison and how the victims will be compensated. However, the latest step is of a nature that dampens the morale of the victims.
FTX creditors will receive the return of their assets based on the value at the time of the bankruptcy filing. According to the plan offered by FTX, the value of customer asset claims will be determined retrospectively based on the exchange’s value at the time of its collapse in November 2022.
This situation is an extremely detrimental step for the victims according to current market prices. According to the latest filing in the Delaware District Court, crypto claims will be converted and refunded to the victims. At the time of filing, the value of Bitcoin was $17,036, while with the increase experienced in 2023, BTC is now over $42,000.
Victims who have been waiting to collect their claims for more than a year are anxious about the decision presented to them. Especially the losses they will face in altcoins could be greater, as some cryptocurrencies have increased fivefold in value in 2023, and the new plan could lead to additional lawsuits.
Due to the complex debt structure, the court may approve the new plan for full repayment of claims. In reports published on December 9, it was observed that addresses connected to the bankrupt FTX exchange transferred $23.59 million worth of cryptocurrency to different exchanges.
