FTX debtors propose an estimated value of $16,871 for each Bitcoin held by creditors in the bankruptcy filing. Other cryptocurrencies are also included in the proposal. Users, however, have raised objections to the plan, expressing concerns about potential losses. The fate of these claims will be determined following a hearing scheduled for January 25.
Our analysis of the situation
In a recent turn of events, FTX debtors have divulged their proposed $16,871 valuation for Bitcoin claims in a filing at the United States Bankruptcy Court for the District of Delaware. This move aims to establish fair and reasonable valuations for user claims based on digital assets at the time of FTX’s collapse in November 2022.
FTX’s proposal includes estimated prices for various assets, spanning both fiat and cryptocurrency, with Bitcoin (BTC) potentially fetching $16,871 per coin, Ether (ETH) at $1,258, and Binance Coin (BNB) at $286. Notably, the disclosed table excluded an estimated FTX Token (FTT) price but did encompass prices for leveraged tokens, tokenized stocks, spot derivatives, and crypto futures.
The debtors highlighted the court’s wide discretion in choosing the most suitable method for estimating the valuation of claims based on digital assets, emphasizing that the goal is not to calculate claims with mathematical precision but instead to consider all relevant factors and circumstances.
While the debtors have leaned on data from Coin Metrics to gauge the estimated prices of digital assets, users of the now-defunct FTX have been quick to voice their objections. Many have been unable to access their funds since the exchange’s collapse, with some even resorting to selling their claims at a value lower than their total worth amid uncertainties surrounding the outcome.
Amidst these developments, an FTX user under the alias TrueDoodles exclaimed, “What a scam, honestly. But instead that the whole thing goes for another 10 years with unknown outcomes and more billions in lawyer costs. I would rather take what they offer and multiply it in the market.”
As the court’s decision looms, this tremulous situation could potentially leave numerous cryptocurrency holders at a loss, particularly with the remarkable surges in the prices of Bitcoin and Ether post-FTX collapse.
The ramifications of this decision, should it come to pass, remain to be seen as the broader cryptocurrency community observes closely. The hearing on this matter is set for January 25, and until then, this tale of valuation and discord persists.
With the world of cryptocurrency often fraught with uncertainty, the closing chapter on this FTX saga is eagerly anticipated by both affected parties and interested onlookers alike.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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