FTX faces backlash after proposed estimation of customers’ Bitcoin at $16k

Bankrupt FTX seeks tribunal support to estimation its customers’ integer plus claims successful U.S. dollars, according to a Dec. 27 tribunal filing.

The speech clarified that the enactment was indispensable to forestall immoderate hindrance successful the bankruptcy proceeding, adding that:

“The liquidation of each idiosyncratic Claim successful respect of a Digital Asset is impractical and unnecessary and would unduly hold these Chapter 11 Cases.”

As such, the defunct crypto level proposed estimating Bitcoin’s worth astatine $16,871, Ethereum’s terms at $1,258, and Solana’s SOL astatine $16. The steadfast besides estimated Avalanche’s AVAX astatine $14.19, stablecoins USDT, TUSD, and BUSD a fewer cents little than their accustomed $1 peg.

The worth of galore of these integer assets, barroom the stablecoins, has rapidly accrued amid the important marketplace emergence of the past year. For context, BTC is trading supra $40,000 presently, portion ETH’s worth has besides exceeded $2,200. SOL is besides trading astatine much than $100 arsenic of property time.

However, FTX argued that its valuations correspond a “fair and reasonable” worth of these integer assets arsenic of the petition date—Nov. 11, 2022.

FTX creditors privation to ‘fight’ motion

Meanwhile, the question has attracted disapproval from FTX creditors, who describe it arsenic different theft and impulse radical to entity to the plan.

Sunil Kavuri, 1 of the astir salient creditors of the bankrupt firm, noted the question grossly undervalues the worth of the integer assets and urges customers to “fight.”

“Alameda probe claims prices are up by 40%. Alameda, FTX VCs, assertion buyers of unsecured non-customer claims are getting this other value. FTX creditors indispensable fight,” helium added.

The FTX 2.0 Coalition, a radical of FTX creditors, advised customers who privation to entity to the question to write a missive to the justice successful complaint of the bankruptcy case.

“Anyone tin nonstop a signed missive addressed to the Delaware bankruptcy court. No lawyer needed,” the radical said.

Simon Dixon, the CEO of BnkToTheFuture, chimed successful that FTX customers “should combat this hard.”

Customers who disagree with the question person until Jan. 11 to entity to the plan.

The station FTX faces backlash aft projected estimation of customers’ Bitcoin astatine $16k appeared archetypal connected CryptoSlate.