FTX Creditors File Motion to Block Crypto Valuation with Low 2 | Crypto LVL

FTX Creditors File Motion to Block Crypto Valuation with Low 2022 Prices

A group of FTX creditors have filed a motion seeking to stop plans of the collapsed exchange from valuing their cryptocurrency assets based on 2022 prices.

The creditors filed a motion urging the bankruptcy court to estimate claims based on virtual assets and fiat currency in line with the digital assets conversion table to ensure they receive the full value of their assets.

“By this Motion, the Debtors request entry of the Order pursuant to sections 502(c) and 105(a) of the Bankruptcy Code, substantially in the form attached hereto as Exhibit A, estimating Claims based on Digital Assets and fiat currency by approving the Digital Assets Conversion Table to value such Claims, including Customer Entitlement Claims, for purposes of any plan in these Chapter 11 Cases.”

As the bankruptcy proceeding continues, FTX administrators are looking to adopt an approach to value assets based on 2022 prices, which is when it filed for bankruptcy, and pay creditors in the fiat value.

This approach will block creditors from receiving the current crypto valuations of their assets which have doubled since 2022. The bear market of 2022 was riddled with industry implosion and macroeconomic factors leading to plunging asset prices.