Business, Spoken
FTX Creditors Say Payout Deal Is 'an Insult'—and Plan to Revolt
May 9, 2024
FTX creditors express discontent with the proposed payout deal, citing misleading recovery percentages. Some creditors are divided on accepting the offers while others push for a quick resolution. Unity and turnout are crucial as creditors weigh their decisions.
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Quick takeaways
- Creditors are dissatisfied with FTX's plan to repay 118% of losses, citing valuation discrepancies and unfavorable stipulations.
- FTX's bankruptcy plan faces resistance over potential changes post-approval, limitations on recovery options, and concerns about creditor protection.
Deep dives
FTX Creditors Express Discontent with Proposed Payout Deal
Creditors of the bankrupt crypto exchange FTX are unsatisfied with a plan that offers to recover 118% of their losses. The leaders of a 1600-member voting block urge members to reject the proposal due to valuation discrepancies and unfavorable stipulations. The plan, aiming for a full recovery plus interest, draws criticism for assigning a dollar value to crypto assets claims instead of their present value.
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