On Dec. 27, 2023, FTX debtors released a projected valuation of claims involving digital assets, with the proposal suggesting conversion of claims into dollar amounts pegged to crypto asset values as of Nov. 11, 2022. Consequently, an individual who held bitcoin on FTX would receive $16,871 for each coin, in contrast to the current value of $42,800 per bitcoin.
FTX Customers May See Reduced Payouts in Crypto Asset Bankruptcy Case
People who had funds on FTX and are now navigating the bankruptcy proceedings are less than satisfied with the proposed claims estimates by the debtors. The latest documentation provided by the FTX estate indicates that the “Digital Asset Conversion Table” adheres to section 502(b) of the bankruptcy code, mandating that claims be assessed at the time of the Chapter 11 petition filing.
FTX notes that this valuation method has been utilized in other crypto-related bankruptcy cases, such as those involving Blockfi, Voyager Digital, and the Celsius Network. The FTX estate asserts that the court must endorse the “digital asset conversion table.” This table sets the value of BTC, presently trading at $42,800, at $16,871 by using the Nov. 11, 2022, exchange rates.
ETH holders would receive $1,258 per unit instead of the current $2,396, and SOL, valued at $100 today, is pegged at $16.24 on the table. DASH and BCH holders are also slated to receive less, with values listed at $35.51 per DASH and $102.21 per BCH, compared to their higher current rates.
This extensive list encompasses all digital assets held on FTX, including those in vesting periods. Clients have until Jan. 11, 2024 to contest these valuations, and the X account, known as “FTX 2.0 Customer Coalition,” is guiding individuals on the objection protocol. “Many people are asking how to object,” the spokesperson for the group remarked. “Anyone can send a signed letter addressed to the Delaware bankruptcy court. No lawyer needed.”
Currently, Claims Market, a Cherokee Acquisition subsidiary that facilitates the sale of bankruptcy claims, indicates FTX claims are trading at $0.67 on the dollar, with sellers asking for $0.72. FTX claims, alongside other notable crypto bankruptcy cases like Celsius and Blockfi, are actively traded here, moving millions of dollars in claims.
Source : Bitcoin News by Jamie Redman / Dec 28, 2023