FTX creditors representative challenges FTX compensation plan
Sunil Kavuri said that FTX creditors want their crypto assets back, not fiat money.
FTX was 2nd top popular crypto trading platform, after the Binance crypto exchange, but in Nov 2022 this crypto platform collapsed badly when people realised that company executives misused the majority of the funds for personal benefits. In the present time, the FTX bankruptcy leaders are engaged in returning all the former FTX customers’ money, as a part of bankruptcy proceedings.
On 8 May 2024, Through a press release, the FTX bankruptcy leadership informed that they are waiting for the court approval for the proposed compensation plan under which FTX will distribute funds between $14.5 billion and $16.3 billion to the customers.
In response, FTX creditors representative Sunil Kavuri showed his disappointment and said that FTX creditors don’t want fiat money.
According to the FTX creditors representative, FTX creditors want their crypto assets back, the crypto funds that they were holding on to the FTX crypto exchange just before bankruptcy.
Sunil explained that the value of the crypto assets on the FTX crypto exchange during bankruptcy was very low, as the trade price of the majority of the crypto assets was down, but now the trade price of all those crypto assets is significantly very high.
As per Sunil’s opinion, if FTX bankruptcy leaders will follow their proposed compensation plan then it will lead to a $10 billion loss to the FTX creditors.
This is not the first time when people raised concerns over the FTX’s bankruptcy proceedings. Earlier this many times many former FTX customers said that FTX bankruptcy leaders sold crypto assets at very high prices but they wanted to give compensation equal to the value of those assets when prices were down enough, during the time of bankruptcy of the exchange.
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