FTX creditors representative challenges FTX compensation plan
In response, FTX creditors' representative Sunil Kavuri expressed disappointment and stated that FTX creditors do not want fiat money. According to Sunil, FTX creditors want their crypto assets back, the crypto funds they held on the FTX crypto exchange just before bankruptcy
FTX was the second most popular cryptocurrency trading platform, following Binance's crypto exchange. However, in November 2022, the platform collapsed severely when it became clear that company executives had misused the majority of the funds for personal gain. Currently, the FTX bankruptcy leaders are engaged in returning all former FTX customers' money as part of bankruptcy proceedings.
On May 8, 2024, through a press release, the FTX bankruptcy leadership announced that they are awaiting court approval for the proposed compensation plan under which FTX will distribute funds between $14.5 billion and $16.3 billion to customers.
In response, FTX creditors' representative Sunil Kavuri expressed disappointment and stated that FTX creditors do not want fiat money. According to Sunil, FTX creditors want their crypto assets back, the crypto funds they held on the FTX crypto exchange just before bankruptcy.
Sunil explained that the value of the crypto assets on the FTX crypto exchange during bankruptcy was very low, as the trade price of the majority of the crypto assets was down, but now the trade price of all these crypto assets is significantly high. As per Sunil's opinion, if the FTX bankruptcy leaders follow their proposed compensation plan, it will result in a $10 billion loss for FTX creditors.
