FTX Debtors’ Filing Sets Controversial Valuations for Cryptocurrency Claims Post-Collapse

The aftermath of the FTX collapse continues to unfold with important developments within the cryptocurrency world. In a notable transfer, FTX debtors have filed a proposal to find out a good and cheap worth for person claims primarily based on digital property. This proposal was submitted on December 27, 2023, to the US Chapter Courtroom for the District of Delaware. It suggests changing claims into greenback quantities pegged to crypto asset values as of November 11, 2022.

The submitting lists costs for about 500 property in each fiat and cryptocurrency, primarily based on values on the time of FTX’s chapter submitting. The proposed costs embody $16,871 per Bitcoin (BTC), $1,258 for Ether (ETH), and $286 for Binance Coin (BNB). Notably, the desk excludes an estimated FTX Token (FTT) value however contains costs for leveraged tokens, tokenized shares, spot derivatives, and crypto futures.

The FTX debtors have used information from Coin Metrics to estimate the digital asset costs. The courtroom has broad discretion in selecting the tactic to estimate the valuation of claims primarily based on digital property. In response to the chapter code’s part 502(b), claims should be assessed on the time of the Chapter 11 petition submitting. This method has been utilized in different crypto-related chapter instances, together with these involving Blockfi, Voyager Digital, and the Celsius Community. The courtroom’s pending approval of this movement will decide the ultimate consequence.

This estimation technique has sparked sturdy objections from FTX customers, who haven’t had entry to their funds since November 2022. Many customers really feel they’d miss out on positive aspects from sure tokens, given the numerous rise in cryptocurrency costs for the reason that collapse. As an example, the value of Bitcoin has risen greater than 150% since then. Customers wishing to object to this estimation can ship a letter to the Delaware chapter courtroom while not having a lawyer.

The FTX claims are presently being traded on the Claims Market, a subsidiary of Cherokee Acquisition, at about $0.67 on the greenback. This buying and selling platform additionally handles claims from different notable crypto chapter instances like Celsius and Blockfi. The buying and selling of those claims entails shifting hundreds of thousands of {dollars} and displays the continued market dynamics post-FTX collapse.

Picture supply: Shutterstock

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