The objection emphasizes that the plan of the liquidation commission and the temporary administration of the exchange completely ignores issues related to ownership, since it assumes the possibility of transferring to creditors property previously owned by FTX.
In addition, the proposed option of repaying debts to creditors in the form of cash payments will result in a taxable event and additional losses for investors of the exchange.
Plaintiffs noted that FTX’s proposed repayment plan was riddled with ambiguities regarding terms of service for clients, inconsistencies in the analysis of debt settlement timelines, and a lack of adequate information regarding adversarial proceedings.
Let us remind you that according to the plan for repaying obligations to FTX creditors, the total amount of payments could be about $16 billion. The temporary administration of the exchange intends to pay part of the funds to investors in cash.
Earlier, experts from the analytical company K33 said that payments to creditors of the collapsed FTX cryptocurrency exchange in cash could have a significant impact on the digital asset market and provoke positive “buying pressure.”
Source: Bits

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