FTX Faces Customer Backlash Over Proposed Liquidation Plan
Portfolio Pulse from Murtuza Merchant
FTX is seeking court approval for a liquidation plan to repay customers in cash based on November 2022 cryptocurrency prices, which has led to backlash from customers who feel shortchanged. The plan could repay 98% of customers within 60 days if approved.
June 25, 2024 | 3:40 pm
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FTX's proposed liquidation plan values Bitcoin at $16,800, far below its current price of $60,000, leading to customer backlash and lawsuits.
The proposed valuation of Bitcoin at $16,800 by FTX is significantly lower than its current market value of $60,000. This discrepancy has led to customer dissatisfaction and legal actions, which could negatively impact Bitcoin's short-term price due to uncertainty and potential sell-offs.
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