Despite the recent surge in crypto prices, FTX customers are expressing frustration with the proposed bankruptcy plan.
Promising Payouts
The bankruptcy process has resulted in a potential windfall for FTX customers. The exchange’s assets have increased in value, leading to the possibility of payouts exceeding initial investments.
Customer Concerns
However, some customers remain dissatisfied. They argue that the valuation of their accounts is too low and that they will not receive a fair share of the payouts. Over 80 individuals have submitted letters to the bankruptcy court expressing their concerns.
Proposed Plan
FTX’s proposed plan anticipates distributing 118% of the original account value to most customers. This is an unusually high payout compared to other bankruptcy cases.
Frustrated Customers
Former creditor committee member Arush Sehgal has rallied support from 1,500 individuals who oppose the plan. Sehgal and other customers claim they will only receive a fraction of what their accounts were worth.
Pending Vote
The ultimate resolution of the case will depend on a vote by FTX account holders and the consideration of creditor comments by US bankruptcy judge John Dorsey.
Market Impact
The uncertainty surrounding the bankruptcy process has had an impact on FTX’s native token, FTT. The token has seen a 28% increase in value in recent weeks.
