FTX Customers Challenge Valuation of Digital Asset Claims
FTX, a bankrupt crypto exchange, is facing legal opposition from its customers over the assessment of their digital asset claims. The exchange is seeking to appraise customer claims in U.S. dollars based on cryptocurrency prices as of the bankruptcy date, drawing criticism from creditors who argue that the proposed values significantly undervalue their digital assets.
Customers Push Back on Undervalued Crypto Claims
A recent court filing revealed that FTX’s proposal values Bitcoin at $16,871 and Ethereum at $1,258, with Solana and Avalanche valued at $16 and $14.19. Stablecoins like USDT, TUSD, and BUSD are also marked lower than their typical $1 value. Creditors have condemned this valuation, labeling it as a gross underestimation, and urging other customers to oppose the motion.
A Call to Action for Affected Customers
Notable creditors like Sunil Kavuri and others in the FTX community are urging customers to actively contest this valuation. The FTX 2.0 Coalition has advised customers wanting to challenge the plan to write directly to the judge overseeing the bankruptcy case, highlighting that legal representation is not required to express objections to the court.
Discrepancy in Digital Asset Valuation
FTX’s filing suggests values for approximately 500 digital assets, including major cryptocurrencies and various tokenized assets. The listed prices were markedly lower than their market values on the date of FTX’s collapse. If the court approves FTX’s valuation plan, many cryptocurrency holders could miss out on potential gains from their digital assets.
Potential Gains at Stake for Objecting Customers
Customers who disagree with the proposed valuation have until January 11 to file their objections, highlighting a crucial window for those seeking to contest the exchange’s estimates.
Hot Take: FTX Faces Backlash Over Undervalued Digital Asset Claims
FTX is facing a legal challenge from its customers over the valuation of their digital asset claims. The proposed values significantly undervalue cryptocurrencies, drawing criticism from creditors. Customers are being urged to contest the valuation, which could potentially result in missed gains from their digital assets if accepted by the court.
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