FTX Creditors Seek Updated Value Estimations
A group of FTX creditors have taken action to prevent the collapsed exchange from valuing their cryptocurrency assets based on 2022 prices. The creditors have filed a motion urging the bankruptcy court to estimate claims based on virtual assets and fiat currency, using the digital assets conversion table. This would ensure that they receive the full value of their assets.
FTX’s Approach to Value Assets
As FTX administrators continue with the bankruptcy proceeding, they are planning to value assets based on 2022 prices and pay creditors in fiat currency. However, this approach would prevent creditors from receiving the current valuations of their crypto assets, which have doubled since 2022.
Customers Could Lose Crypto Gains
The Official Committee of Unsecured Creditors supports the motion filed by the group of creditors. They argue that estimating claims collectively is the fair way to proceed. If the court determines that crypto deposits are not part of the estate’s property, they should be returned to customers without being used to cover other expenses. Customers claim that FTX’s valuation is unfair as it deprives them of gains made in the last year. However, FTX argues that current bankruptcy laws allow them to estimate claims using the date of bankruptcy.
Hot Take: FTX Creditors Fight for Fair Valuation
A group of FTX creditors is fighting against the exchange’s plan to value their crypto assets based on 2022 prices. They are urging the bankruptcy court to consider updated value estimations using the digital assets conversion table. This would ensure that creditors receive the full value of their assets, taking into account the significant gains made in cryptocurrency prices since 2022. However, FTX argues that estimating claims based on the date of bankruptcy is allowed by current bankruptcy laws. The outcome of this dispute will determine whether FTX creditors will be able to benefit from the recent surge in cryptocurrency values or if they will lose out on their gains.
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