
FTX, the bankrupt cryptocurrency exchange, has proposed a compensation plan to repay creditors over $15 billion. However, the plan has faced criticism from various stakeholders including Sunil Kavuri, a representative of the largest group of FTX creditors, who argues that the plan should compensate in cryptocurrency rather than the dollar value at the time of bankruptcy. This criticism stems from the significant appreciation in cryptocurrency values post-bankruptcy, which has led to a situation where the dollarized liabilities are now eclipsed by the rise in the value of non-dollar assets. Despite the plan's promise to repay creditors 118-142% of their claims, many feel that the recovery does not reflect the current high market values of their original crypto holdings. Losses to creditors exceeded $10 billion.









The FTX estate has proposed a plan 📃 for creditors to be made whole, but creditors need to approve first… or not? 🤔 @ThomasBraziel explains the concept of a “cramdown” and how it could be important for the case. 🎧 Listen now: https://t.co/HzwtYTidoQ https://t.co/tvAf08DMab
Brand new pod! 🗣️ We dig into the FTX fiasco - customers told they'll get their money back plus interest, but lawyers made $1.5 billion! The assets appreciated so much since bankruptcy. Are users really being made whole? https://t.co/528nRTKpv4
Was Sam Bankman-Fried proven right that FTX was illiquid but solvent now that customers are getting back about $1.18 for every $1 they had on the exchange? The numbers suggest ... no, @danielgkuhn writes. Opinion. https://t.co/1xRZXZGKHn