FTX Creditors are all set to vote on a reorganization plan, which could open the door to repayment soon. Court documents and a call to vote that surfaced online suggest that the creditors could soon receive back their lost funds.
FTX Creditors To Vote On A Plan for Funds Recovery
The official committee of unsecured creditors of FTX negotiated a plan with debtors and called creditors to vote on the same on October 7. According to a document, debtors and the official committee negotiated the payment plan, date value of creditor claims and distributions, finally calling for a vote. The outcome of the vote could speed up the payback for creditors.
FTX crypto holders are expected to recover only 10-25% of their lost assets according to recent court documents shared by self-proclaimed FTX creditor activist Sunil Kavuri.
The documents revealed that FTX will transfer 18% of forfeited funds from the US Department of Justice into a special “Preferred Shareholder Remission Fund.”
The $230 million-capped fund will compensate FTX’s preferred shareholders – investors who held equity in the company before its collapse. While these shareholders stand to benefit, many FTX crypto holders are frustrated, as their recoveries are expected to be much lower.
Users Voice Their Frustration
In response to the post, one user voiced their comment saying: “Disgraceful, we have been scammed twice!”
Kavuri also pointed out that repayments will be calculated based on the asset prices at the time of FTX’s bankruptcy filing. For example, Bitcoin was priced at around $16,000 at the time, compared to its current value of $65,000, while Solana was valued at $17, far below its current price of $160.
It was previously noted during the bankruptcy process that the crypto assets have noted an enhancement in their value and creditors can be paid back on a dollarized basis.
Crypto traders expressed their disagreement on the last-minute changes to the payback plan as per their responses on X.
