{"id":26735,"date":"2023-12-17T00:42:58","date_gmt":"2023-12-17T00:42:58","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/ftx-debtors-will-assess-values-of-crypto-claims-based-on-petition-date-market-prices\/"},"modified":"2023-12-17T00:43:00","modified_gmt":"2023-12-17T00:43:00","slug":"ftx-debtors-will-assess-values-of-crypto-claims-based-on-petition-date-market-prices","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/ftx-debtors-will-assess-values-of-crypto-claims-based-on-petition-date-market-prices\/","title":{"rendered":"FTX debtors will assess values of crypto claims based on petition date market prices"},"content":{"rendered":"
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The debtors of the now-defunct cryptocurrency exchange FTX have filed an amended Chapter 11 plan of reorganization which indicates the value of customer asset claims will be retroactively set to the time when the exchange collapsed in November 2022.\u00a0<\/p>\n

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 November 11, 2022.<\/p>\n

It was stated that the value of a claim will be determined by the crypto asset’s value into cash using conversion rates specified in a conversion table.\u00a0<\/p>\n

Court Filing in the United States Bankruptcy Court. Source: Kroll.<\/em><\/figcaption><\/figure>\n

However, there has been a rise in crypto prices since the bankruptcy filing. Bitcoin (BTC) was valued at $17,036 during the filing, but at the time of publication, the price stands at $42,272.<\/p>\n

Meanwhile, last month, on November 30, FTX was approved to sell approximately $873 million of trust assets, with the proceeds intended to repay creditors of the collapsed exchange.\u00a0<\/p>\n

Related:\u00a0Sam Bankman-Fried\u2019s lawyer says FTX fraud trial was \u201calmost impossible\u201d to win: Report<\/em><\/strong><\/p>\n

Joseph Moldovan, chair of business solutions, restructuring, and governance practices at Morrison Cohen \u2014 a New York-based law firm \u2014 previously explained to Cointelegraph the complexities of the FTX bankruptcy.<\/p>\n

“What\u2019s most unusual about the FTX bankruptcy is that the debtors are complex entities with significant amounts of debt,” he stated.<\/p>\n

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FTX Debtors have filed the reorg. Plan<\/p>\n

Most importantly they have ignored FTX TOS that states Digital Assets are the property of Users and not FTX Trading<\/p>\n

The plan says that Digital Assets are valued at Petition Date conversion rates (prices) pic.twitter.com\/WTj07nlOP5<\/a><\/p>\n

\u2014 Sunil (FTX Creditor Champion) (@sunil_trades) December 16, 2023<\/a><\/p><\/blockquote>\n

Meanwhile, on December 7, Cointelegraph reported that the FTX 2.0 Customer Ad Hoc Committee proposed to revise the reorganization plan in order to\u00a0maintain a balance among stakeholder interests.\u00a0<\/p>\n

There has been significant scrutiny of the activities of crypto assets associated with both FTX and Alameda Research in recent times.<\/p>\n

On December 9, reports revealed that wallets linked to these defunct entities transferred digital assets worth $23.59 million to multiple crypto exchanges.<\/p>\n

Magazine:\u00a0Lawmakers\u2019 fear and doubt drives proposed crypto regulations in US<\/em><\/strong><\/p>\n<\/div>\n