Some former clients of the now-bankrupt crypto company FTX Trading Ltd. are urging a U.S. judge to reconsider the proposed repayment rules, claiming that the plan unfairly excludes them from the yearlong surge in Bitcoin and other digital currency prices.
Over 80 individuals have filed objections to a plan that ties the value of their digital assets to FTX’s bankruptcy filing date, Nov. 11, 2022, and proposes reimbursement in U.S. dollars rather than returning the crypto coins. FTX’s founder, Sam Bankman-Fried, stepped down amid fraud allegations, leading to the collapse of the FTX exchange.
The bankruptcy team argues that calculating the precise value of each customer’s digital portfolio is impractical due to the vast number of claims.
The objections will be considered as part of the payout plan, which will be sent to creditors for a vote in the coming months before seeking final approval from the U.S. Bankruptcy Judge John Dorsey.
