FTX Creditors Want Debts Repaid in Cryptocurrency, Not USD
In a recent development, Sunil, a key figure in the ongoing FTX saga, urged stakeholders to vote against the proposed plan. Sunil’s stance highlights several key issues surrounding the current situation:
Sullivan & Cromwell – S&C/Debtors owe FTX customers the current value of their holdings, which is 3 to 10 times the petition price. S&C allegedly caused significant losses to FTX creditors estimated at over $10 billion. FTX founder SBF reportedly faces 25 years in prison for violating the Terms of Service (TOS) and allegedly misappropriating customer deposits. S&C is embroiled in an ongoing class action lawsuit, accused of aiding and abetting SBF’s fraudulent activities.
FTX announced plans to allocate billions of dollars in additional cash reserves to pay interest to 2 million customers, a relatively rare outcome compared to typical bankruptcy settlements where creditors typically receive minimal payouts.
According to a company statement, after liquidating all assets, the exchange expects to have approximately $16.3 billion in cash reserves available for distribution. The outstanding debt owed to customers and other non-government creditors is approximately $11 billion. Ambush potential coins in advance, click on my avatar to find me. Welcome to like, follow, collect, and forward.
