The debtors of the now-defunct cryptocurrency exchange FTX have filed an amended Chapter 11 plan of reorganization, which proposes that the value of customer asset claims will be retroactively set to the time when the exchange collapsed in November 2022.
The Amended Plan: A Detailed Look
In a recent court filing in the United States Bankruptcy Court for the District of Delaware, the debtors outlined that any customer entitlement claim against the exchange aimed at compensating the holder will be based on the value as of the date the exchange filed for bankruptcy on Nov. 11, 2022.
If the plan is approved, the value of a claim will be determined by the crypto asset’s value into cash using conversion rates specified in a conversion table.
Market Price Fluctuations and Implications
However, there has been a rise in crypto prices since the bankruptcy filing. Bitcoin was valued at $17,036 during the filing, but at the time of publication, the price stands at $42,272.
FTX’s Asset Sales and Creditor Repayment
Meanwhile, on Nov. 30, FTX was approved to sell approximately $873 million of trust assets, with the proceeds intended to repay creditors of the collapsed exchange.
Stakeholder Interests and Revisions
FTX 2.0 Customer Ad Hoc Committee proposed to revise the reorganization plan in order to maintain a balance among stakeholder interests.
Scrutiny of Associated Crypto Assets
On the other hand, there has been significant scrutiny of the activities of crypto assets associated with both FTX and Alameda Research in recent times.
On Dec. 9, reports revealed that wallets linked to these defunct entities transferred digital assets worth $23.59 million to multiple crypto exchanges.