FTX customers to be repaid at $16,871 bitcoin prices
Bankruptcy lawyers for FTX are proposing a repayment plan for FTX customers that calculates the USD value of their holdings as of November 11, 2022. On that date, FTX originally petitioned for bankruptcy protection. Back then, bitcoin was worth $16,871. At press time, bitcoin is worth about 150% more at $42,154. 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. 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.” FTX executives Sam Bankman-Fried, Caroline Ellison, Nishad Singh, and Gary Wang have been found guilty of federal crimes. In particular, they improperly diverted FTX customer deposits into personal payouts, illegitimate corporate expenses, and a propri...