📣Hey BTC enthusiasts! Here's a spicy update for you! 🌶️ FTX, the bankrupt crypto exchange, is giving its creditors a choice: cash or crypto. The decision is in the hands of Judge John Dorsey, who's approved the necessary solicitation packages and ballots. The clock is ticking, with the voting deadline set for August 16th. 🗳️
FTX's reorganization plan proposes to repay creditors the U.S. dollar value of their crypto assets at the time of the exchange's collapse. The bankruptcy estate has proposed a 118% return for 98% of creditors with claims less than $50,000. Non-governmental creditors are set to receive 100% of their claims and potential additional interest payments of up to 9% from when FTX collapsed. 💸
Here's a twist: FTX has more than enough to repay affected parties. Despite creditors losing approximately $11 billion when FTX went bankrupt, the estate has over $16 billion from consolidating funds and selling assets. 🏦
Now, remember when BTC was trading at around $16,000 when FTX halted withdrawals? Well, it's now worth over $61,000, a whopping 281% increase! The total crypto market cap has also more than doubled since November 2022, from $1 trillion to $2.27 trillion. 🚀
However, not everyone is happy with the proposed plan. FTX creditors, led by activist Sunil Kavuri, have filed an objection, arguing that the plan fails to meet certain requirements of the Bankruptcy Code. The saga continues, so stay tuned for more updates! 🍿