FTX’s Revised Reorganization Plan Sparks Controversy

Following FTX’s bankruptcy, the company entered a reorganization process. In a recent development, the “reorganization plan” submitted to the Delaware District Bankruptcy Court has caused significant unease among creditors.

In the cryptocurrency market, the collapse of Terra and FTX led to a significant decrease in the value of crypto assets. FTX filed for bankruptcy in November 2022, following its financial crisis. After the bankruptcy process, the company entered a restructuring phase and began raising funds for its creditors. Now, the revised version of FTX’s restructuring plan is being criticized by creditors and victims.

The Restructuring Plan Based on the Value at the Time of Filing

According to the restructuring plan presented in the United States Bankruptcy Court for the District of Delaware, FTX creditors will receive their reimbursements based on the values determined at the time of the bankruptcy filing. This situation, especially considering the price increase in Bitcoin and other altcoins, creates a disadvantage for the victims.

Sunil Kavuri, a close follower of the FTX events and one of its creditors, also made statements from account X regarding the issue.

After the bankruptcy, the price of Bitcoin was around $17,000, but it is now trading above $42,000. In this situation, the restructuring plan is insufficient for creditors. According to the revised plan, the amount to be paid to creditors does not reflect the current high values of crypto assets.

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