FTX creditors are expressing their anger over the minimum payouts they are set to receive as the collapsed exchange prepares to distribute $16 billion to make its lenders whole. The controversy arises from significant fluctuations in cryptocurrency prices since FTX initially filed for bankruptcy.
As reported, FTX creditors will receive between 10% and 25% of their crypto back. Notably, the repayments will be based on the petition date, which means values will reflect when crypto prices were much lower. For perspective, Bitcoin's (BTC) price was $16,000 at the time of filing and is currently around $65,000.
Creditors are upset with the decision to use petition date prices for reimbursement. They argue that this reorganization plan will not fully compensate for their losses, many of which included life savings. Several creditors have reported severe emotional tolls, including mental distress and panic attacks, as a result of the collapse.
