Creditors of the bankrupt cryptocurrency exchange FTX are now faced with the option of receiving their assets in cash or crypto.in the United States Bankruptcy Court for the District of Delaware revealed that Judge John Dorsey had approved the solicitation packages and ballots needed for the exchange’s customers to communicate their preferences. The deadline for voting is August 16, and Judge Dorsey will decide on the matter in early October.to repay creditors the U.S.
The embattled crypto trading platform also disclosed that it had amassed more than was needed to repay affected parties. While creditors lost approximately $11 billion when FTX went bankrupt in 2022, the estate has gotten over $16 billion from consolidating funds and selling assets, including properties belonging to former FTX executives.
When FTX halted withdrawals and imploded in November 2022, bitcoin traded at around $16,000. However, at the time of writing, the crypto asset wassince November 2022, from $1 trillion to $2.27 trillion, indicating that other crypto assets, including large-cap altcoins, have also rallied.Considering the growth witnessed by the crypto market in the past 20 months, it would be deemed unfair that FTX creditors receive the cash value of their holdings at the time of the collapse.
Additionally, FTX lawyers insisted that implementing the cash repayment plan would ensure creditors are not subject to capital gain taxes.to the proposed plan earlier this month. They argued that the plan failed to meet certain requirements of the Bankruptcy Code, including property rights issues, consistent debtors liquidation analysis, and satisfying the best interest test.Best AI Crypto Coins in 2024: Top 9 Projects to WatchOne Weekly Email Can Change Your Crypto Life.