FTX Debtors Present New Proposal
Debtors of the bankrupt FTX cryptocurrency exchange have presented a revised proposal for reorganization under Chapter 11. The proposal suggests that the value of claims on customer assets will be determined retrospectively from the time of the exchange’s collapse in November 2022.
In a recent submission to the United States Bankruptcy Court for the District of Delaware, the debtors specified that any claims by customers against the exchange, intended to compensate the holder, will be calculated based on the asset’s value as of the exchange’s bankruptcy filing date on Nov. 11, 2022.
If the proposal is accepted, the valuation of claims will depend on converting the value of crypto assets into cash using rates specified in a conversion table.
Joseph Moldovan, who leads business solutions, restructuring, and governance practices at Morrison Cohen, a New York-based law firm, previously explained to Cointelegraph the complexities surrounding the FTX bankruptcy.
“What’s most unusual about the FTX bankruptcy is that the debtors are complex entities with significant amounts of debt,” he stated.
On December 7, reports covered the proposal by the FTX 2.0 Customer Ad Hoc Committee, aiming to adjust the reorganization plan for a fairer alignment of stakeholder interests.
At the same time, there has been significant scrutiny of operations involving crypto assets related to FTX and Alameda Research in recent days.
Reports on December 9 revealed that wallets associated with these defunct entities transferred digital assets valued at $23.59 million to various crypto exchanges.
