In FTX, which went bankrupt in December after the collapse that started in November 2022 with the leak of its assets to the press, it seems that the payment of creditors has not satisfied everyone. While a block was started to be formed on behalf of creditors in January, this group exceeded 1600 people. Block leaders expressed their dissatisfaction with the new payment plan.
“It’s an insult to creditors”
Two leaders of the group, Sunil Kavuri and Arush Sehga, have been urging creditors to vote against the new payment plan. Sehgal said in a statement, “The recovery percentages are drawn from a fake baseline. It’s a false narrative, it’s an insult to creditors.”
Law firm and bankruptcy-era sales questioned
Kavuri also tweeted yesterday that Sullivan and Cromwell, the law firm he worked with before the collapse of FTX, was excluded from the payment plan in terms of liability and said, “If the plan is accepted, they will not be sued in bankruptcy. They are also a defendant in the class action lawsuit we filed because they previously assisted the SBF.”
“S&C puppet John Ray in charge with no accountability,” Kavuri said of the CEO of the bankruptcy administration.
As it is known, creditors have long stated that payments should be made in the form of cryptocurrencies. The reason for this was that cryptocurrencies have risen significantly since the day FTX went bankrupt. For example, while Bitcoin was at the level of 15 thousand dollars at that time, it is now over 60 thousand dollars…
Creditors have long criticized the recent asset monetization policy of FTX’s new management. For example, while the bankruptcy administration sold shares in Mysten Labs, it also monetized SUI token rights. However, if those rights had remained in place today, the total value would have exceeded 900 million dollars. In other words, these sales actually yielded a much lower return than expected.
3 times losing value
In FTX’s new plan, it is aimed to pay 118% of their losses to people who will receive less than 50 thousand dollars. However, this payment to be made in dollars loses approximately 3 times in value when calculated in cryptocurrency values.