FTX and Alameda Managers Liquidate Assets Over $100 Million Amid Compensation Plan Disputes

The collapse of FTX and Alameda has sent shockwaves through the crypto world, leaving creditors in limbo as they await resolution on their claims. The recent liquidations of over $100 million in assets by the managers of the two firms signal a step towards compensating those who lost out in the collapse.

FTX’s proposal for a compensation plan, promising creditors over 100% of their allowed claims within 60 days of court approval, has stirred up both hope and controversy. While the plan aims to expedite the resolution process and provide relief to creditors, there are concerns about the valuation of assets and the methods of payment outlined in the plan.

The recent liquidations, which include the sale of a diverse array of cryptocurrencies, have raised eyebrows, particularly the below-market sale of Solana. Creditors have expressed outrage at what they perceive as shortchanging, further complicating the already contentious situation.

The opposition to the proposed recovery plan, voiced by the largest creditor group’s spokesperson, Sunil Kavuri, underscores the discontent and distrust among creditors. Accusations of fraud and complicity against FTX and S&C, the law firm representing FTX, add fuel to the fire, casting doubt on the legitimacy of the proposed compensation plan.

As the deadline for voting on the plan approaches in June, the fate of FTX’s creditors remains uncertain. With widespread dissatisfaction and grievances within the crypto community, it is clear that resolving the disputes stemming from the collapse of FTX and Alameda will be no small feat.

The crypto world is watching closely as this saga unfolds, with the hope that justice will prevail and creditors will receive fair compensation for their losses. Only time will tell what the outcome will be, but one thing is certain – the repercussions of this collapse will be felt for a long time to come in the crypto industry.