The aftermath of the FTX collapse: Debtors propose fair value for user claims
In the wake of the FTX collapse, debtors have submitted a proposal to determine a fair and reasonable value for user claims based on digital assets. The proposal suggests converting claims into dollar amounts pegged to crypto asset values as of November 11, 2022. It lists prices for approximately 500 assets, including Bitcoin, Ether, and Binance Coin, based on values at the time of FTX’s bankruptcy filing. The court will ultimately decide whether to approve this motion.
FTX users object to estimation method
Many FTX users are objecting to the estimation method proposed by the debtors. They argue that they would miss out on gains from certain tokens due to the significant rise in cryptocurrency prices since the collapse. For example, Bitcoin has risen more than 150% since then. Users can voice their objections by sending a letter to the Delaware bankruptcy court without needing a lawyer.
FTX claims traded on Claims Market
The FTX claims are currently being traded on the Claims Market, a subsidiary of Cherokee Acquisition. The trading platform also handles claims from other notable crypto bankruptcy cases like Celsius and Blockfi. The trading of these claims involves moving millions of dollars and reflects the ongoing market dynamics post-FTX collapse.
Hot Take: FTX debtors propose fair value estimation for user claims
Following the FTX collapse, debtors have put forth a proposal to determine a fair and reasonable value for user claims based on digital assets. This move aims to address concerns about potential losses for users due to rising cryptocurrency prices since the collapse. While objections have been raised regarding the estimation method, the court’s pending approval will ultimately determine the outcome. Meanwhile, the trading of FTX claims on the Claims Market highlights the ongoing market dynamics in the aftermath of the collapse.
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