FTX debtors will assess values of crypto claims based on petition date market prices
The debtors of the now-defunct cryptocurrency exchange FTX have filed an amended Chapter 11 plan of reorganization which indicates the value of customer asset claims will be retroactively set to the time when the exchange collapsed in November 2022.
In a recent court filing in the United States Bankruptcy Court for the District of Delaware the debtors outlined that any customer entitlement claim, regardless of type of nature, against the exchange aimed at compensating the holder will bebased on the value as of the petition date.
On November 11, 2022, FTX and 130 affiliate companies filed for bankruptcy.
However, the price of Bitcoin (BTC) at the time of filing was $17,036. Meanwhile, at the time of publication, the price stands at $42,272.
Meanwhile, last month, on November 30, FTX was approved to sell approximately $873 million of trust assets, with the proceeds intended to repay creditors of the collapsed exchange.
Related: Sam Bankman-Fried’s lawyer says FTX fraud trial was “almost impossible” to win: Report
Joseph Moldovan, chair of business solutions, restructuring, and governance practices at Morrison Cohen — a New York-based law firm — previously told Cointelegraph that the FTX bankruptcy is fairly complex.
“What’s most unusual about the FTX bankruptcy is that the debtors are complex entities with significant amounts of debt,” he stated.
FTX Debtors have filed the reorg. Plan
Most importantly they have ignored FTX TOS that states Digital Assets are the property of Users and not FTX Trading
The plan says that Digital Assets are valued at Petition Date conversion rates (prices) pic.twitter.com/WTj07nlOP5
— Sunil (FTX Creditor Champion) (@sunil_trades) December 16, 2023
Meanwhile, on December 7, Cointelegraph reported that the FTX 2.0 Customer Ad Hoc Committee proposed to revise the reorganization plan in order to maintain a balance among stakeholder interests.
There has been significant scrutiny of the activities of crypto assets associated with both FTX and Alameda Research in recent times.
On December 9, reports revealed that wallets linked to these defunct entities transferred digital assets worth $23.59 million to multiple crypto exchanges.
Magazine: Lawmakers’ fear and doubt drives proposed crypto regulations in US
Victims in New York were promised “well-paying, flexible jobs,” only to be tricked into a crypto scam, according to New York Attorney General Letitia James.
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Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.
It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.
He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.
Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.
“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.
“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Ms Siddiq insists she has “done nothing wrong”.
Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.
Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.
Tory leader Kemi Badenoch has called on Sir Keir to sack the minister
Read more from Sky News:
Ten Reform councillors quit in protest
Liz Truss sends cease and desist letter to Starmer
As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.
She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.
On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.
“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”
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