The FTX debtors have filed to repay creditors in the same value as the time of the exchange’s collapse, potentially denying them the significant gains made in 2023. The troubled crypto exchange is nearing the final stages of a restructuring process that promises an imminent relaunch and full repayment to creditors and customers.
Distressed FTX customers and creditors are formally opposing a motion that aims to deny them the crypto profits earned last year. FTX recently proposed an estimation motion that would dollarize customer claims as of November 11, 2022, the date the crypto exchange filed for Chapter 11 bankruptcy protection in the United States. The exchange proposes to reset crypto prices to Bitcoin at $16,871, ETH at $1,258, and Solana (SOL) at $16.2. The motion suggests that the remaining assets should be allocated to non-customer creditors, including shareholders.
However, FTX customers have strongly disagreed with the motion, arguing that it would be unfair given the significant gains made by the respective crypto assets in the past year, particularly SOL. The customers have written an objection to the motion, addressed to Judge Dorsey, stating that the debtor’s arguments could result in unfair compensation and should therefore be denied. The FTX estate holds about 10 percent of SOL’s total circulating supply, with the majority set to be unlocked by 2028.
The future of FTX is gradually taking shape, with the court’s restructuring process ensuring fairness to creditors and debtors. The relaunch of FTX has sparked significant speculation in the crypto industry, helping the native token rally despite its lack of intrinsic value. Current holders of FTT have no use case other than speculating on the near future relaunch of FTX. The US justice system has found SBF guilty of all charges and is now awaiting final sentencing.
Despite the challenges, including a tarnished reputation and increased competition in the web3 sector, the reopening of the FTX exchange could benefit from the rapidly growing web3 industry, its deep crypto liquidity, and a change in leadership. The appointment of John Ray III to facilitate the restructuring process has boosted confidence in the FTX crypto exchange.
The FTX’s native token FTT has seen significant trading volume in recent months in anticipation of the full relaunch of the troubled cryptocurrency exchange. As of this report, the FTT token traded around $3.25, up about 20 percent in the past seven days. The FTT token has a fully diluted valuation of about $1 billion and an average 24-hour trading volume of around $133 million. Despite its tarnished reputation following its sudden collapse, the company still holds a significant amount of valuable digital assets like Bitcoin, Ethereum, Solana, and stablecoins.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | John Ray III, Judge Dorsey, SBF, Sunil |
| Companies | Crypto News Flash, Gemini, Coinbase, Binance, FTX |
| Currencies | Bitcoin, Solana, Ethereum, TokenFi |
| Securities | None |
