when

Gary

Read

/send

<div class="protos">
 <div>
  <div>
   <div>
    <p>Bankruptcy lawyers for <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> are proposing a repayment plan for <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> <a rel="noopener noreferrer nofollow" title="customers" href="https://thebittimes.com/tag/customers.html">customers</a> that calculates the USD value of their holdings as of November 11, 2022. On that date, <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> originally petitioned for bankruptcy protection.</p>
    <p>Back then, bitcoin was worth $16,871. At press time, bitcoin is worth about 150% more at $42,154.</p>
    <p>Most customers opposed a repayment plan based on such inferior prices. Nevertheless, on Wednesday, a Delaware court ruled that bankruptcy judge John Dorsey has broad discretion to determine allowable methods for calculating bankruptcy claims.</p>
    <p>With that approval and case law backing, Dorsey wrote, “I conclude that debtor’s use of the petition date for determining the value of the digital assets claims is appropriate.”</p>
    <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://cdn.thebittimes.com/images/2024/02/01/68ad6bb210b5e20f94178ba1319b985c.webp" alt class="wp-image-59695" srcset="https://cdn.thebittimes.com/images/2024/02/01/68ad6bb210b5e20f94178ba1319b985c.webp 1024w, https://cdn.thebittimes.com/images/2024/02/01/68ad6bb210b5e20f94178ba1319b985c.webp 300w, https://cdn.thebittimes.com/images/2024/02/01/68ad6bb210b5e20f94178ba1319b985c.webp 768w, https://cdn.thebittimes.com/images/2024/02/01/68ad6bb210b5e20f94178ba1319b985c.webp 1536w, https://cdn.thebittimes.com/images/2024/02/01/68ad6bb210b5e20f94178ba1319b985c.webp 1200w, https://cdn.thebittimes.com/images/2024/02/01/68ad6bb210b5e20f94178ba1319b985c.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
    </figure>
    <p><a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> executives Sam Bankman-Fried, Caroline Ellison, Nishad Singh, and Gary Wang have been found guilty of federal crimes. In particular, they improperly diverted <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> <a rel="noopener noreferrer nofollow" title="customer" href="https://thebittimes.com/tag/customer.html">customer</a> deposits into personal payouts, illegitimate corporate expenses, and a proprietary trading company that they controlled called Alameda Research.</p>
    <p>By the time FTX filed for bankruptcy protection, Alameda owed billions of dollars to FTX that it could never repay.</p>
    <p>As claims mounted against the defunct crypto exchange and trading company, the tally reached mind-boggling numbers. The total bankruptcy claims now exceed $2 quintillion. There were millions of customers and countless corporate counterparties who were harmed as the once-$32 billion FTX collapsed to $0.</p>
    <p>Each claim, when tallied separately (and therefore, double-counted), sums to more money than the $454 trillion that exists on earth.</p>
    <figure class="wp-block-embed is-type-wp-embed is-provider-protos wp-block-embed-protos">
     <div class="wp-block-embed__wrapper">
      <blockquote class="wp-embedded-content" data-secret="mQA2AOAXzt">
       FTX authorized to sell Sam Bankman-Fried’s Bahamas penthouse
      </blockquote><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="“FTX authorized to sell Sam Bankman-Fried’s Bahamas penthouse” — Protos" src="https://protos.com/ftx-authorized-to-sell-sam-bankman-frieds-bahamas-penthouse/embed/#?secret=6sFTPd4PFd#?secret=mQA2AOAXzt" data-secret="mQA2AOAXzt" width="500" height="282" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe>
     </div>
    </figure>
    <p><em>Read more: FTX-funded charity Effective Ventures agrees to return donations</em></p>
    <p>Incredibly, however, <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> bankruptcy attorneys are still hoping for a so-called pay-in-full plan. It assumes that US regulators, including the IRS and SEC, will subordinate behind claims of regular <a rel="noopener noreferrer nofollow" title="customers" href="https://thebittimes.com/tag/customers.html">customers</a> — allowing <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> to repay <a rel="noopener noreferrer nofollow" title="customers" href="https://thebittimes.com/tag/customers.html">customers</a> and not pay its multi-billion dollar regulatory fines.</p>
    <p>This is a big assumption. For context, the IRS alone demanded $24 billion from the estate. Other regulators and government entities around the world have also made large demands.</p>
    <p><em>Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, </em><em>Instagram</em><em>, </em><em>Bluesky</em><em>, and </em><em>Google News</em><em>, or subscribe to our </em><em>YouTube</em><em> channel.</em></p>
   </div>
  </div>
 </div>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/ftx-customers-to-be-repaid-at-16-871-bitcoin-prices-tbt78491.html">https://thebittimes.com/ftx-customers-to-be-repaid-at-16-871-bitcoin-prices-tbt78491.html</a></p>

FTX customers to be repaid at $16,871 bitcoin prices

TheBitTimes

Other articles published on Feb 1, 2024

Bitcoin Boom Expected as Banking Woes Increase, Claims BitMEX Founder

Paybis Introduces Payment Fallbacks to Reduce Friction in Crypto Purchases

Binance Accused of Aiding Terrorists by Hamas Victims in a Lawsuit

Enhancing Browser Security: Essential Strategies for Safe and Secure Web Browsing

Singapore Raises Red Flags: Concerns Over Crypto Draining Kits Emerge

Derivatives Trading Protocol Aevo To Launch Native Token – Airdrop Confirmed

Join our free newsletter for daily crypto updates!