FTX Repayment Plan Overhaul: Creditors Feel Scammed All Over Again

FTX’s revised repayment plan has angered cryptocurrency holders, who now face recovering only 10-25% of their assets. The changes favour preferred shareholders, leading to concerns about fairness.

FTX Creditors Outraged as New Plan Offers 10-25% Asset Recovery Amid Rising Crypto Prices

Under the new plan, crypto holders will receive just 10-25% of their lost assets. Much of the remaining funds will be directed towards preferred shareholders, sparking outrage among creditors.

The valuation of assets will be based on the prices at the time of FTX's bankruptcy filing, which were much lower than current market prices. This has left many investors feeling unfairly disadvantaged as cryptocurrency prices have since risen significantly.

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Preferred shareholders benefit from FTX repayment plan and receive 18% of recovered funds

Preferred shareholders stand to gain 18% of the recovered funds, which will be placed into a $230 million remission fund. Meanwhile, crypto holders are left with a significantly lower recovery rate, adding to their frustration.

FTX still owes $12.7 billion in repayments, and the disparity in recovery rates between crypto holders and preferred shareholders has raised questions about the fairness of the entire repayment structure.

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The significant disparity between shareholder and creditor recovery rates suggests that the repayment plan disproportionately benefits equity investors at the expense of ordinary crypto holders.