FTX creditors sue over $16,871 bitcoin price repayment plan
A group of FTX creditors has filed an adversary lawsuit in response to the bankrupt crypto exchange’s payout plans, seeking to establish that deposits are their property rather than FTX’s. FTX’s proposed plan would see creditors repaid based on November 2022 prices of digital assets — far below what they are now. Bitcoin, for example, is worth $42,708 at press time but was worth 60% less in November 2022 at just $16,871. Despite complaints by creditor s over these huge price changes, in an omnibus reply filed on Monday, FTX argued that bankruptcy law requires digital asset repayment price s to be determined based on when a firm filed for bankruptcy (November 2022). However, FTX also acknowledged that the court has not established that creditors’ digital assets are in fact under its possession. Creditors Sunil Kavuri, Ahmed Abd-El-Razek Noia Capital SARL, and Pat Rabitte believe that digital assets constitute creditor property rather than the propert...