The aftermath of the FTX collapse continues to unfold with significant developments in the cryptocurrency world. In a notable move, FTX debtors have filed a proposal to determine a fair and reasonable value for user claims based on digital assets. This proposal was submitted on December 27, 2023, to the United States Bankruptcy Court for the District of Delaware. It suggests converting claims into dollar amounts pegged to crypto asset values as of November 11, 2022.
The filing lists prices for approximately 500 assets in both fiat and cryptocurrency, based on values at the time of FTX’s bankruptcy filing. The proposed prices include $16,871 per Bitcoin (BTC), $1,258 for Ether (ETH), and $286 for Binance Coin (BNB). Notably, the table excludes an estimated FTX Token (FTT) price but includes prices for leveraged tokens, tokenized stocks, spot derivatives, and crypto futures.
The FTX debtors have used data from Coin Metrics to estimate the digital asset prices. The court has broad discretion in choosing the method to estimate the valuation of claims based on digital assets. According to the bankruptcy code’s section 502(b), claims must be assessed at the time of the Chapter 11 petition filing. This approach has been used in other crypto-related bankruptcy cases, including those involving Blockfi, Voyager Digital, and the Celsius Network. The court’s pending approval of this motion will determine the final outcome.
This estimation method has sparked strong objections from FTX users, who have not had access to their funds since November 2022. Many users feel they would miss out on gains from certain tokens, given the significant rise in cryptocurrency prices since the collapse. For instance, the price of Bitcoin has risen more than 150% since then. Users wishing to object to this estimation can send a letter to the Delaware bankruptcy court without needing a lawyer.
The FTX claims are currently being traded on the Claims Market, a subsidiary of Cherokee Acquisition, at about $0.67 on the dollar. This trading platform also handles claims from other notable crypto bankruptcy cases like Celsius and Blockfi. The trading of these claims involves moving millions of dollars and reflects the ongoing market dynamics post-FTX collapse.
Image source: Shutterstock Read The Original Article on Blockchain.News