- FTX customers object to a compensation plan that excludes crypto market gains over the past year.
- More than 80 individuals have filed objections challenging the valuation strategy.
- FTX pegs customers’ digital assets value to the date of bankruptcy filing to settle claims in U.S. dollars.
Several former customers of the now-bankrupt crypto firm FTX are rallying against the proposed bankruptcy plan, claiming it unfairly excludes them from the substantial gains in the crypto market over the past year. According to Bloomberg, more than 80 individual customers have submitted objections, urging a U.S. judge to reconsider the repayment strategy outlined in the plan.
FTX, led by founder Sam Bankman-Fried, faced a significant downfall amid fraud allegations, ultimately resulting in its collapse. The company filed for bankruptcy on November 11, 2022, leaving numerous customers with their crypto assets trapped on the platform. The subsequent conviction of Bankman-Fried for orchestrating a massive fraud added complexity to the bankruptcy proceedings.
The proposed plan aims to peg the value of customers’ digital…
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