**FTX Creditors Face Major Setbacks in Bankruptcy Reimbursement Plan**
FTX creditors are set to receive only 10-25% of their cryptocurrency back, according to revised bankruptcy documents. These reimbursements will be based on cryptocurrency prices from the petition date, when Bitcoin was around $16,000, sparking outrage among creditors.
Sunil Kavuri, an FTX creditor-activist, highlighted the mental distress and financial ruin many customers face due to the collapse. Critics argue that Sam Bankman-Fried violated FTX's terms of service by using client funds to pay debts.
The reorganization plan has faced multiple objections, including from a U.S. trustee and the SEC, who are concerned about excessive legal protections and potential stablecoin reimbursements.