FTX, a cryptocurrency exchange, has outlined a plan to assess the values of crypto claims held by its debtors. In a revised Chapter 11 plan of reorganization, FTX debtors explained that they will use a conversion table to value the crypto assets based on the petition date market prices. This approach aims to prevent any potential manipulation or fluctuation in the value of the crypto assets during the bankruptcy proceedings.
The use of the petition date market prices as the basis for valuing the crypto claims ensures that debtors receive a fair evaluation of their assets at the time of filing for bankruptcy. By using a conversion table, FTX aims to provide a consistent and objective method of determining the value of different cryptocurrencies, eliminating any potential biases or speculative valuations.
This plan highlights FTX’s commitment to transparency and fairness in dealing with its debtors. By relying on the market prices at the time of the bankruptcy petition, FTX ensures that the value of the crypto assets accurately reflects the market conditions at that specific point in time. This approach should help to alleviate any concerns about the accuracy and fairness of the valuation process.
Overall, FTX’s decision to assess the values of crypto claims based on petition date market prices demonstrates a commitment to maintaining integrity and fairness within the bankruptcy proceedings. This approach should provide clarity and certainty to FTX debtors, allowing them to understand the value of their crypto assets and make informed decisions accordingly.
