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The debtors of the now-defunct cryptocurrency exchange FTX have submitted a revised Chapter 11 reorganization plan, which specifies that the value of customer asset claims will be retroactively established as of the moment the exchange collapsed in November 2022.
In a recent submission to the United States Bankruptcy Court for the District of Delaware, the debtors clarified that any customer entitlement claim, irrespective of its nature, against the exchange aimed at compensating the holder will be calculated based on the value as of November 11, 2022.
It was indicated that the value of a claim will be assessed by converting the crypto asset’s value into cash on the day FTX filed for bankruptcy—November 11—utilizing conversion rates outlined in a conversion table.
Court Filing in the United States Bankruptcy Court. Source: Kroll.
At the time of the bankruptcy filing, the price of Bitcoin (BTC) was $17,036. In contrast, at the time of this publication, the price is $42,272.
Additionally, last month, on November 30, FTX received approval to liquidate approximately $873 million of trust assets, with the proceeds designated for repaying creditors of the collapsed exchange.
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Joseph Moldovan, chair of business solutions, restructuring, and governance practices at Morrison Cohen—a New York-based law firm—previously elaborated to Cointelegraph on the intricacies of the FTX bankruptcy.
“What’s most unusual about the FTX bankruptcy is that the debtors are complex entities with significant amounts of debt,” he remarked.
On December 7, Cointelegraph reported that the FTX 2.0 Customer Ad Hoc Committee suggested modifications to the reorganization plan to ensure a balance among stakeholder interests.
There has been considerable scrutiny regarding the activities of crypto assets linked to both FTX and Alameda Research in recent times.
On December 9, reports indicated that wallets associated with these defunct entities transferred digital assets valued at $23.59 million to various crypto exchanges.
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