DeFi
Dispute Over FTX Bankruptcy Plan
Saturday. June 22 at 10:00 AM
1 min. readFTX customers are contesting the exchange's bankruptcy plan, claiming it infringes on their property rights by selling their assets to pay off third-party creditors, including the U.S. government. The objection, led by the FTX Customers Ad Hoc Committee, argues that customers never relinquished ownership of their cryptocurrency to FTX. They demand the return of their digital assets instead of a cash balance. The committee asserts that FTX is attempting to use customer funds to settle debts with unsecured creditors, including hefty fines to the IRS and CFTC. While the FTX estate insists that customers will be fully reimbursed if the plan is approved, the committee disputes this, emphasizing the need for the return of customers' property. The bankruptcy case also involves legal battles over seized assets from former CEO Sam Bankman-Fried's criminal trial, adding complexity to one of the largest crypto exchange collapses in history.