Many FTX creditors jumped against FTX bankruptcy leadership, as they decided to give a refund in cash at a valuation of the trade price that was in Nov 2022.
FTX was a popular crypto exchange known for high-level promotional stunts. In Nov 2022, FTX filed for bankruptcy under the Chapter 11 code. Its former CEO Sam Bankman-Fried (SBF) is currently in jail for the misuse & mismanagement of the FTX customers fund.
On 16 Dec 2023, FTX submitted its revised Chapter 11 plan. Under this new plan exchange aimed to give a refund to the FTX customers on behalf of the trade value of the assets at the time of bankruptcy filing.
FTX Debtors have filed the reorg. Plan
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Most importantly they have ignored FTX TOS that states Digital Assets are the property of Users and not FTX Trading
The plan says that Digital Assets are valued at Petition Date conversion rates (prices) pic.twitter.com/WTj07nlOP5
— Sunil (FTX Creditor Champion) (@sunil_trades) December 16, 2023
Since FTX’s bankruptcy (Nov 2022), the trade price of the holding assets surged by 100%. In particular, Solana (Sol) gains a 600% increment in the trade price, the highest amount of holding over any other digital asset in FTX’s bag.
So the FTX bankruptcy leaders are trying to distribute only cash value, instead of the actual amount of digital assets. The new plan is good for FTX leaders but the majority of the FTX creditors opposed this idea because it will lead to a very big loss for them.
Some FTX creditors noted that FTX’s revised Chapter 11 plan is against FTX’s terms & conditions which mention that digital assets belonged to customers and not the exchange.
FTX’s revised Chapter 11 plan is not the final decision to save the customers because this decision will require vote support from the FTX creditors. It is interesting to notice that, In the revised bankruptcy filing, they already mentioned that as long the solution is ‘fair and equitable,’ creditors who disagree with the plan could still be forced to accept it.
So here chances for the approval of this new revised plan are still 50%-50%.
Amid these developments with FTX, the trade price of FTX token (FTT), the native token of the FTX exchange, is facing a significant downfall.
Currently, FTX holds nearly $1 billion worth of FTT tokens and probably they are planning to sell this holding that why the trade price of this coin is facing panic sell pressure.
Read also: Hash war between Bitcoin miners surges, is it a big Bitcoin bull run sign?
FTX revised its reorganisation plan, many creditors oppose
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