The debtors of the defunct cryptocurrency exchange FTX have filed an amended Chapter 11 reorganization plan. This plan stipulates that the value of customer asset claims will be retroactively set to the market prices on November 11, 2022, the date FTX filed for bankruptcy. The valuation of claims will be determined using a conversion table, converting the crypto assets' value into cash based on those rates.
Since FTX's bankruptcy filing, there has been a notable increase in cryptocurrency prices. For instance, Bitcoin's value has risen from $17,036 at the time of filing to $42,272 at the time of reporting. In November 2023, FTX was authorized to sell approximately $873 million of trust assets, with the proceeds intended to repay the exchange's creditors.
Joseph Moldovan, chair of business solutions at Morrison Cohen, highlighted the unique complexities of FTX's bankruptcy, pointing out the significant debts and the intricate nature of the debtors involved.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.