- Sunil Kavuri criticizes FTX’s compensation plan for severely undervaluing customer claims.
- FTX customers will potentially lose $10 billion with the proposed plan.
- The plan includes clauses shielding the firm from lawsuits, which may lead to claim forfeitures if checks are not cashed in time.
Creditor activist Sunil Kavuri has voiced strong opposition to the proposed plan of FTX to compensate the defrauded customers of the fallen crypto exchange. Kavur took to X to outline his concerns and encourage a collective “NO” vote against the plan. For context, FTX creditors stand to lose over $10 billion should the proposed plan pass.
FTX PlanTakeaways
1) Sullivan and Cromwell included exculpation clause so they + no one involved sued for misconduct
2) S&C puppet John Ray in charge with no accountability
3) Petition prices + 18% ($50K)
4) Cheques paid
5) Lose claim if cheques not cashed…
— Sunil (FTX Creditor Champion) (@sunil_trades) May 8, 2024
The activist highlighted the proposed repayment structure severely undervalues the claims of FTX customers. Specifically, the plan suggests paying out claims with an 18% return for those under $50,000 …
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