FTX has put forward a new proposal for compensating victims of its 2022 collapse, promising to repay all claims from creditors as well as additional compensation “worth billions” for the loss of time value of their investments. However, some experts argue that this may still not be enough.
According to a statement released on May 7, the bankrupt cryptocurrency exchange stated that the plan is still subject to approval from the Delaware Bankruptcy Court.
Only creditors with claims under $50,000 will be eligible for the proposed 118% recovery plan, which FTX expects to cover 98% of its creditors.
However, some creditors have been pushing for reimbursement based on current market values rather than the value of their assets at the time of FTX’s collapse in November 2022.
Since then, the cryptocurrency market has seen a significant recovery, with Bitcoin rising by 280%.
