A United States court has approved bankrupt crypto exchange FTX’s proposal to hold a vote on a liquidation plan. Despite opposition, FTX creditors will vote on a plan to pay back customers in cash.
FTX, which collapsed in November 2022, has recovered about $16 billion to pay creditors, including $12 billion in cash. The company claims creditors will be paid in full with interest, although critics argue they will receive less than the current market value for their assets.
Some creditors, unhappy with the plan, point out the significant difference in crypto values between 2022 and now. For example, a BTC deposited before the bankruptcy was worth $16,800, but its current market value exceeds $61,500. Aggrieved creditors argue the plan is unfair.
This court decision marks a significant step in the lengthy bankruptcy proceedings and highlights ongoing tensions in the crypto market. The outcome of the vote could set a precedent for future crypto-related bankruptcies, impacting market regulations and creditor expectations.
