PANews June 18 news, according to CoinDesk, according to documents filed on Friday by the United States District Court for the Southern District of New York, FTX bankruptcy victims are seeking a ruling requiring the approximately $8 billion in assets seized from the cryptocurrency exchange to be returned to customers rather than included in the bankruptcy estate. Last month, the bankruptcy estate proposed a reorganization plan to return 118% of creditors' claims in cash within 60 days of court approval, a move that angered FTX customers because their funds were trapped and they failed to benefit from the rise in cryptocurrency prices.
Court documents indicate that FTX went bankrupt during the "crypto winter" when cryptocurrency prices plummeted. Since the bankruptcy filing, Solana (SOL) prices have soared ninefold and Bitcoin prices have risen fourfold, making customer claims extremely unfair based on the value at the time. Victims' lawyers Adam Moskowitz and David Boies said that FTX customers felt robbed and regarded bankruptcy as a "second theft" and believed that the bankruptcy property was no different from the business run by SBF (former CEO), who was sentenced to 25 years in prison for fraud.
FTX collapsed in November 2022, and a jury found that SBF stole at least $8 billion from customers. SBF was also ordered to forfeit $11 billion and plans to appeal. The document stated that if it were not for SBF's crimes, customers would have been able to keep their cryptocurrency investments. In addition, bankruptcy law requires that certain creditors be given priority, and FTX's FTT token holders are almost at the bottom of the priority list and are unlikely to receive compensation from the bankruptcy estate. Moskowitz said that because the full accounting calculation has not yet been completed, the amount of damages is uncertain, but damages of more than $8 billion are certain.