FTX Customers Face Disappointment over Proposed Payouts
Customers of FTX who are going through the bankruptcy process are expressing their dissatisfaction with the estimated claims provided by the debtors. The documentation released by the FTX estate states that the “Digital Asset Conversion Table” follows the guidelines of the bankruptcy code, which requires claims to be assessed at the time of the bankruptcy filing.
FTX argues that this valuation method has been used in other crypto-related bankruptcy cases and must be endorsed by the court. According to the table, BTC would be valued at $16,871 instead of the current $42,800 per coin. ETH would be pegged at $1,258 instead of $2,396, SOL at $16.24, DASH at $35.51, and BCH at $102.21.
Customers Have the Option to Contest Valuations
FTX customers have until Jan. 11, 2024, to contest these valuations. The FTX 2.0 Customer Coalition is providing guidance on the objection protocol and advising individuals on how to send a signed letter to the Delaware bankruptcy court without the need for a lawyer. Claims from FTX and other crypto bankruptcy cases are actively traded on Claims Market, with FTX claims currently trading at $0.67 on the dollar.
A Hot Take on FTX’s Proposed Crypto Asset Bankruptcy Payouts
The proposed claims estimates by FTX debtors have left customers disappointed, as the valuations according to the “Digital Asset Conversion Table” would result in reduced payouts compared to current market values. Customers who held bitcoin on FTX would receive $16,871 per coin instead of the current value of $42,800. FTX customers have until Jan. 11, 2024, to contest these valuations and can send a signed letter directly to the Delaware bankruptcy court. Claims from FTX and other crypto bankruptcy cases are actively traded on Claims Market, with FTX claims currently trading at $0.67 on the dollar.
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