when

The resolution over the bankrupt cryptocurrency exchange, FTX, <a href="https://news.todayq.com/ftx-account-holders-set-to-cash-in-big-with-over-100-payout/" rel="noopener noreferrer nofollow">creditors payout</a> is facing a potential challenge. Creditors of FTX are reportedly getting together to reject the proposed plan that promises to repay them for 118 percent of their losses. However, one of the creditor groups is arguing against the generous offer. FTX bankruptcy plan faces opposition 
As reported, all of the FTX’s creditor will be getting 100% of their money back. This payment will be done in cash plus interest. It is expected that the payout distributed among customers and other creditors will be between $14.5 billion and $16.3 billion in cash.
A group of creditors is going against this generous offer as they believe that the plan is deeply flawed and fails to address their concerns. This group consists of around 1,600 claimants led by Sunil Kavuri and Arush Sehgal. They are gearing up to oppose the plan when it goes down to vote in June.
Arush Sehgal proposed that the recovery portion is based on the misleading baseline. It paints a false picture of the creditors’ actual losses and it is offering insufficient repayment. What are the demands? 
Sunil Kavuri in a post highlighted the takeaways from the recent FTX plan. He suggested that Sullivan and Cromwell included an exculpation clause. This is done so no one gets involved or sued for misconduct.
He mentioned that John J. Ray III is in charge with no accountability, while petition prices are with 18% addition. However, the cheques will get paid but they will lose the claim if not cashed within 6 months.
He advocated voting NO to this plan and added that debtors owe FTX customers the current value of their holdings (3x to 10x petition prices).
FTX collapsed in November 2022 due to a shortage of funds needed to facilitate customer withdrawals, leaving billions of dollars in customer funds unaccounted for. Founder Sam Bankman-Fried was subsequently convicted of fraud and conspiracy charges and sentenced to 25 years in prison in April.
The bankruptcy plan filed on Tuesday outlines a path to full recovery, plus interest, for most creditors, facilitated by the liquidation of investments made by FTX Ventures and Alameda Research. Government agencies, including the IRS and CFTC, have agreed to suspend high-value claims against FTX until creditors are repaid, with the IRS receiving a $200 million upfront payment as part of the settlement.

FTX bankruptcy plan fails to impress creditors, Will it get rejected?

HASH

Other articles published on May 9, 2024

Bitcoin faces 5th day of losses as market sentiment turns neutral

Toncoin Price Prediction As TON Eyes $10 On HashKey Partnership, Time To Buy?

Solana Nears Ethereum in Economic Value as Fee Gap Closes

NEAR Protocol’s X account hacked, here’s what we know so far

These Indicators Show Why Bitcoin (BTC) Price and Crypto Market Are Down

Ethereum’s Vitalik Buterin Proposes ‘Multidimensional Gas Pricing’ For Ethereum

Join our free newsletter for daily crypto updates!