Although the crypto market has recovered, investors on FTX still face potential risks.
In the latest document sent to the court regarding bankruptcy, the FTX exchange management unit reaffirmed the plan to compensate users’ assets as previously announced.
Specifically, FTX will calculate the compensation value for users in US dollars (USD), based on the balance in their account at the time FTX goes bankrupt on November 11, 2022, with a reference price of crypto is also on bankruptcy date.
However, this means that investors could lose a significant portion of their assets, as the crypto market has recovered strongly since then, with capitalization increasing from $850 billion in November 2022. up to 1.6 trillion USD by December 2023. Bitcoin price has also increased from $17,000 to over $42,000 over the same period.
Mr. Sunil Kavuri, representing FTX’s group of creditors, argued that the exchange’s compensation plan is unfair to users and violates FTX’s Terms of Use, which states that crypto assets are always owned. of cutomer. Mr. Kavuri also said:
“The reason [former FTX CEO] Sam Bankman-Fried was charged is because he stole users’ digital assets.”
FTX announced that a number of special creditors will have the right to participate in voting on the compensation proposal, but emphasized that the negotiation process has required many agreements and time to get the best compensation plan, fairest and most economical for all parties involved.
Related: The US Tax Department Still Requires FTX to Pay 24 Billion USD in Taxes
In October 2023, the bankruptcy unit taking over FTX presented a compensation plan, expected to be able to return 90% of assets requested from customers if approved by the court before Q2/2024.
The court allowed FTX to conduct the sale of $3.4 billion in crypto assets since September, as well as liquidate hundreds of millions of dollars in crypto fund shares through intermediaries.
According to data as of December 16, FTX has transferred more than 600 million USD in cryptocurrencies to the exchange in the last 3 months.
