FTX’s Bankruptcy Process Another ‘Act of Theft?’ Victims Cry Foul

Sahana Kiran
Source – PYMNTS

The cryptocurrency industry witnessed a major setback following the downfall of FTX. The man behind the now-defunct firm, Sam Bankman-Fried [SBF] sits behind bars. But victims of the exchange continue to fight for justice. Currently, FTX is carrying out its bankruptcy process. At the same time, the customers of the exchange are urging a New York court to rule that FTX forfeited assets that belonged to them and not the bankruptcy estate.

A new filing indicates that these clients are requesting almost $8 billion. They drew attention to the fact that FTX declared bankruptcy during the downturn market. This was when most assets in the market were experiencing serious dips. As a result, they noted how unjust it was in light of the asset’s value back then. To put things in perspective the customers pointed out that Solana [SOL] noted a ninefold surge.

The firm rolled out a new restructuring plan just last month. According to this, about 98% of creditors will get a cash payout of 118% of their claims. This would be processed within 60 days following the court’s approval.

Also Read: Tom Brady Takes Heat Over FTX Links: Netflix Roast Sparks Controversy

FTX Continues To Anger Customers

The latest filing also included an overview of the bankruptcy code. This makes it necessary to give certain creditors more weight than others. The victims saw that FTX’s FTT token holders were at the bottom of the priority list. The victims’ filing further read,

“It is unlikely that holders of that token will receive compensation from the estate.”

The victims’ attorneys, Adam Moskowitz & David Boies, said that the customers continue to feel “aggrieved and robbed.” In addition, FTX’s bankruptcy procedure has even been called a “second act of theft.”

Also Read: FTX Says Almost All Customers Will Get Full Refunds