The debtors for FTX have released estimates of the U.S. dollar value of cryptocurrency prices and foreign currency for customers holding claims with the defunct exchange.
In a Dec. 27 filing in United States Bankruptcy Court for the District of Delaware, the FTX debtors said they sought a “fair and reasonable value” for user claims based on digital assets when the exchange collapsed in November 2022. The proposal listed prices for roughly 500 assets in fiat and cryptocurrency, based on those at the time of FTX’s bankruptcy filing.
According to the proposed prices, Bitcoin (BTC) claimants could receive $16,871 per coin, Ether (ETH) was priced at $1,258, and Binance Coin (BNB) at $286. The table excluded an estimated FTX Token (FTT) price but included prices for leveraged tokens, tokenized stocks, spot derivatives, and crypto futures.
“[T]his Court has broad discretion to choose whatever method it deems best-suited to the particular circumstances to estimate the valuation of Claims based on Digital Assets,” said the filing. “[C]ourts consider all factors and circumstances surrounding the claims, but do not seek to estimate claims with mathematical precision.”
The debtors added:
“[T]he Plan provides for Claims in respect of Digital Assets to be calculated by converting the value of the Digital Asset into Cash as of the Petition Date using the rates set forth in the Digital Assets Conversion Table, and making Distributions in Cash.”
According to the filing, the debtors used data from Coin Metrics to estimate the digital asset prices. Parties with the bankruptcy case have until Jan. 11 to file objections, with a hearing on the matter scheduled for Jan. 25. The motion granting an order to estimate creditor claims based on the proposed pricing is pending approval by the court.
Related: FTX debtors propose separate deal with Sam Bankman-Fried over Embed acquisition
Many X — formerly Twitter — users who claimed to be FTX users objected to the proposed plan. Customers of the defunct crypto exchange have not had access to their funds since November 2022, but some have been able to sell their claims to third parties for less than their total value.
“What a scam, honestly,” said X user TrueDoodles in response to the motion. “But instead that the whole thing goes for another 10 years with unknown outcome and more billions in lawyer costs. I would rather take what they offer and multiple [sic] it in the market.”
Should the court approve the plan, many crypto holders would miss out on the gains from certain tokens. The price of Bitcoin has risen more than 150% since FTX’s collapse to reach $42,452 at the time of publication. The price of Ether has surged more than 87%, from $1,258 to $2,354.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
