FTX Will Only Restore 10-25% Of Lost Assets, Creditors Are Furious

FTX will only return 10-25% of lost assets (Photo; Doc. Feeds2 Benzinga)

JAKARTA - The bankruptcy case of FTX, one of the leading crypto exchanges that collapsed in 2022, is heating up again after the latest payment plans are announced. Based on the latest revision, FTX crypto holders will only receive returns between 10-25% of their lost assets. On the other hand, the company has prepared 230 million US Dollars (Rp 3.4 trillion) from the government's confiscation for shareholders.

The decision shocked creditors, given the revision announced 30 days after the deadline for filing liquidation. Creditors such as Sunil Kavuri, an activist in the FTX creditor group, revealed that 18% of the US Department of Justice's confiscation proceeds would be transferred to FTX shareholders.

This sparked protests because in the Chapter 11 bankruptcy procedure, usually creditors are prioritized in asset returns before shareholders. However, in this agreement, the debtors and shareholders chose to avoid fees and delays caused by potential litigation.

This news was met with anger from FTX creditors, many of whom felt this deal was unfair. Creditors argued that asset returns were based on crypto prices when a lawsuit was filed, when Bitcoin was trading at around 16,000 US Dollars (Rp243 million), much lower than the current price of more than 64,000 US Dollars (Rp972 million).

A number of social media users also criticized this decision. They slipped this deal so late, after the vote was made, "wrote one of the creditors. Some even accused FTX crypto holders of being "tricked twice."

In addition to financial problems, many FTX customers also reported experiencing mental stress due to uncertainty over their lost funds. Some even claimed to have had a panic attack because their life deposits were not immediately restored.

In the midst of this controversy, the FTT token, FTX's original asset, actually experienced a drastic increase of 60% in the last 24 hours. The trading volume of these tokens has even jumped to 3,734%, making it the best-performing asset in the market today.

This increase is fairly strange, considering that the FTT token lost more than 90% of its value after the FTX scandal came to light in 2022. However, currently FTT is trading at 2.18 US Dollars (Rp33,125), although many analysts say that this token has no intrinsic value after bankruptcy.