FTX Offers $16,871 Bitcoin Price for Creditor Claims, Users Reject | Coinspeaker

FTX Offers $16,871 Bitcoin Price for Creditor Claims, Users Reject

UTC by Bhushan Akolkar · 3 min read
FTX Offers $16,871 Bitcoin Price for Creditor Claims, Users Reject
Photo: Depositphotos

If the court approves the proposed plans from debtors, the FTX creditors could lose a huge sum of money considering the rally in crypto market this year.

In a recent filing made on December 27 in the United States Bankruptcy Court for the District of Delaware, FTX debtors have unveiled estimates of the US Dollar value assigned to cryptocurrency prices and foreign currency for customers holding claims with the now-defunct exchange.

The debtors expressed their intention to establish a “fair and reasonable value” for user claims based on digital assets at the time of FTX’s collapse in November 2022. The proposal includes estimated prices for approximately 500 assets, encompassing both fiat and cryptocurrency, as of FTX’s bankruptcy filing.

According to the proposed valuation, claimants holding Bitcoin (BTC) could potentially receive $16,871 per coin. Ether (ETH) was priced at $1,258, and Binance Coin (BNB) at $286. Notably, the presented table excluded an estimated FTX Token (FTT) price but did incorporate prices for leveraged tokens, tokenized stocks, spot derivatives, and crypto futures.

The filing notes:

“This Court has broad discretion to choose whatever method it deems best-suited to the particular circumstances to estimate the valuation of Claims based on Digital Assets. Courts consider all factors and circumstances surrounding the claims, but do not seek to estimate claims with mathematical precision.”

The debtors added that “the Plan provides for Claims in respect of Digital Assets to be calculated by converting the value of the Digital Asset into Cash as of the Petition Date using the rates set forth in the Digital Assets Conversion Table, and making Distributions in Cash.”

As per the filing, the debtors leveraged data from Coin Metrics to gauge the estimated prices of digital assets. Participants involved in the bankruptcy case have a window until January 11 to submit objections. The scheduled hearing on the matter will happen on January 25. The motion seeking an order to estimate creditor claims based on the proposed pricing is currently awaiting court approval.

FTX Users Share Objection

A substantial number of X, previously known as Twitter, users identifying themselves as FTX customers raised objections to the outlined plan. Since November 2022, users of the now-defunct cryptocurrency exchange have been deprived of accessing their funds. Nevertheless, certain individuals have managed to sell their claims to third parties at a value lower than their total worth.

Responding to the notion from the FTX debtor, an X user TrueDoodles said:

“What a scam, honestly. But instead that the whole thing goes for another 10 years with unknown outcome and more billions in lawyer costs. I would rather take what they offer and multiple [sic] it in the market.”

If the court gives its approval to the proposed plan, numerous cryptocurrency holders could lose out on the gains accrued by certain tokens. Notably, the price of Bitcoin has experienced a remarkable surge, exceeding 150% since the collapse of FTX, reaching $42,452 at the time of this publication. Similarly, the price of Ether has witnessed a substantial increase of more than 87%, rising from $1,258 to $2,354.

Altcoin News, Cryptocurrency News, News
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