Some FTX customers urge a U.S. judge to adjust the way the bankruptcy plan repays funds

ChainCatcher news, according to Bloomberg, more than 80 former individual clients of FTX have submitted letters to oppose a plan that ties the value of their digital assets to the date FTX filed for bankruptcy (November 11, 2022) and pays claims in dollars instead of returning cryptocurrency. Robert Shearer from Bronxville, New York, wrote in an objection: "The Bitcoin and Ethereum I held on FTX before the collapse were purchased nearly a decade ago. Simply put, I have no intention of selling at the market's lowest price."

Since the bankruptcy, a team of bankruptcy experts led by FTX's Chief Restructuring Officer John J. Ray III has been working to recover as much cash and crypto assets as possible. The team has obtained court approval to sell the cryptocurrencies held on the platform to create a multi-billion dollar fund that can be returned to customers. The amount of each customer's claim will be based on the price of the cryptocurrencies they held on the FTX platform when the company filed for Chapter 11 in Wilmington, Delaware. Court records show that for Bitcoin holders, this means they will be owed $16,871 for each Bitcoin they hold.

The FTX bankruptcy team argued in court documents that calculating the precise value of each customer's digital portfolio is impractical due to the excessive number of claims. In the coming months, a payment plan will be submitted to creditors for a vote and then presented to U.S. Bankruptcy Judge John Dorsey for final approval. An official committee representing creditors, along with a group that includes several large cryptocurrency holders, has agreed to the general framework of the plan.