In a recent filing on December 27, bankrupt cryptocurrency exchange FTX unveiled its Payment plancausing indignation and discontent among customers. The plan, which values clients' digital assets at the time of the FTX collapse, offers a value significantly lower than prevailing market prices.
FTX under four
He presentation by FTX stated that the payment plan is intended to make substantial progress toward confirming a Chapter 11 plan and returning the value of assets to customers and other creditors.
However, the unique nature of these Chapter 11 cases, involving claims based on digital assets, has posed challenges in determining fair and reasonable values for these unliquidated claims.
According to the filing, to estimate the value of digital assets owed to customers, FTX compiled a data set that included coin and token prices from Coin Metrics, a widely used source of price-related information in the cryptocurrency industry.
Additionally, the filing states that adjustments were made to account for factors such as the order asset liquidationnon-tradable assets and stock-like assets.
However, as reflected in the Digital Asset Conversion Chart, the proposed valuation has left customers dissatisfied, particularly due to the significant discrepancy between the proposed values and current market prices.
For example, bitcoin (btc) is valued at $16,871.63, approximately 61% lower than its current price of $42,800. Similar discrepancies exist for other assets such as ethereum (eth), Solana (SOL), and Lido (LDO), which FTX values at $1,258, $16,247, and $1,176, respectively.
FTX clients demonstrate against payment plan
News of the payment plan has caused unrest among clients who risk losing substantial value of their holdings.
Many clients have expressed their concerns and frustrations, stating that the proposed valuation would significantly harm them. Some clients have searched guide on how to object to or reject FTX's payment plan.
FTX has set a deadline of January 11 for customers to object to the payment plan. If customers do not agree with the proposed assessment, they are encouraged to take the necessary steps to express their concerns within the specified time frame.
As the FTX bankruptcy case progresses, customers and industry observers are awaiting new developments and possible resolutions to address concerns raised by customers regarding the payment plan and valuation of their digital assets.
It remains uncertain what additional measures clients will take to ensure the expected repayment of their assets held on the now-defunct exchange. The company's response to these claims and its plans for next payment steps remain to be seen.
Currently, the exchange's native token, FTT, is trading at $3.1047. In the last 30 days, it has seen a significant drop of over 26%, with a further drop of 8.6% in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
