The collapse of cryptocurrency exchange FTX continues to have repercussions, with creditors yet to retrieve their funds. The bankruptcy committee’s proposed repayment method, compensating investors in fiat currency at November 2022 valuations, has sparked dissatisfaction. This approach has particularly upset those holding altcoins that increased in value since the FTX crash. A recent statement indicates that an issue, not yet disclosed, has arisen in this complex situation.
Investor Discontent with Repayment Approach
Creditors of the defunct FTX are expressing frustration as the committee’s repayment plan fails to reflect the current worth of their digital assets. Those with altcoin holdings that have appreciated over time are at odds with the committee’s decision to settle accounts using the lowest market prices, a move that disregards the potential recovery of their investments.
FTX Asset Sale Procedures Specified
In light of this turmoil, the committee announced further complexities involving the sale of FTX assets. It appears that offers for these assets are being solicited, with implications that other entities might be involved in the sales process.
To clarify the situation, an official directive emphasized that Galaxy Asset Management is the only court-authorized entity to manage FTX asset sales. The bankruptcy committee issued a warning about unauthorized third parties erroneously claiming to represent FTX debtors in potential sales. Any legitimate offers or purchase inquiries are to be conducted solely through Galaxy Asset Management, in accordance with legal regulations.
In addition, the statement highlighted that the terms for unlocking the digital assets held by FTX debtors would remain unchanged in the event of their sale. This asserts the committee’s commitment to maintaining the agreed upon conditions for creditors, even amidst the ongoing asset liquidation process.