FTX Faces Backlash Over Repayment Plan
FTX, the bankrupt cryptocurrency exchange, is facing criticism after revealing its repayment plan on December 27. The plan assigns a lower value to customer digital assets based on their worth at the time of the exchange’s collapse last year.
Controversial Valuation Method
In its proposal, FTX suggests appraising cryptocurrency assets at market rates from November 11, 2022. This approach has received backlash as it means customers will receive amounts below the current market values of their assets.
The proposed valuation includes Bitcoin valued at $16,871.63, Ethereum at $1,258.84, and Solana at $16.2471144. Stablecoins like USDT, TUSD, and BUSD are also marked slightly below their typical $1 value.
Customer Dissatisfaction and Legal Challenges
FTX’s customers and creditors are unhappy with the proposed valuation, arguing that it significantly undervalues their digital assets. They fear missing out on potential gains due to the undervalued repayment plan.
Customers have until January 11 to file objections if they disagree with the proposed valuation. The FTX 2.0 Coalition advises that legal representation is not required to express objections to the court.
Hot Take: FTX Under Fire for Controversial Repayment Plan
FTX is facing backlash from its customers and creditors following its recent court filing, which outlines a contentious repayment plan that undervalues customer digital assets. The proposed valuation method has sparked dissatisfaction and concerns among customers who fear missing out on potential gains. Customers have until January 11 to file objections if they disagree with the proposed valuations. The FTX 2.0 Coalition is actively urging stakeholders to contest the valuation and has advised that legal representation is not required to express objections to the court.
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