{"id":13353,"date":"2024-05-09T11:26:19","date_gmt":"2024-05-09T08:26:19","guid":{"rendered":"https:\/\/forklog.com\/en\/ftx-creditors-criticise-new-compensation-plan\/"},"modified":"2024-05-09T11:26:19","modified_gmt":"2024-05-09T08:26:19","slug":"ftx-creditors-criticise-new-compensation-plan","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ftx-creditors-criticise-new-compensation-plan\/","title":{"rendered":"FTX Creditors Criticise New Compensation Plan"},"content":{"rendered":"<p>Sunil Kavuri, a representative of the largest group of FTX creditors, has opposed the exchange&#8217;s compensation plan, arguing it limits recipients&#8217; options and absolves certain accused parties of responsibility.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">FTX Plan<\/p>\n<p>Takeaways<br \/>1) Sullivan and Cromwell included exculpation clause so they + no one involved sued for misconduct<br \/>2) S&#038;C puppet John Ray in charge with no accountability<br \/>3) Petition prices + 18% (&lt;$50k; 25% to 47% &gt;$50K)<br \/>4) Cheques paid<br \/>5) Lose claim if cheques not cashed\u2026<\/p>\n<p>\u2014 Sunil (FTX Creditor Champion) (@sunil_trades) <a href=\"https:\/\/twitter.com\/sunil_trades\/status\/1788139467322150958?ref_src=twsrc%5Etfw\">May 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The proposal, presented on May 7, includes an &#8220;exculpation clause&#8221; for the law firm Sullivan &#038; Cromwell (S&#038;C), which releases it from any potential liabilities.<\/p>\n<p>Among other shortcomings, Kavuri highlighted the plan&#8217;s fiat payments instead of cryptocurrency. He also noted that creditors&#8217; losses would total approximately $10 billion due to asset valuation at the time of bankruptcy declaration.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;S&#038;C included a liability release clause. If we accept the plan, they cannot be held accountable for misconduct \u2014 selling FTX assets at 70% to 90% discounts to their own clients and insiders (Ledger X, Galaxy), refusing to relaunch FTX 2.0, and so on,&#8221; <a href=\"https:\/\/twitter.com\/sunil_trades\/status\/1788092004838056295\">he noted<\/a>.<\/p>\n<\/blockquote>\n<p>On February 16, a group of creditors <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.flsd.662461\/gov.uscourts.flsd.662461.1.0.pdf\">filed a lawsuit<\/a> against the law firm for actively aiding in the &#8220;multi-billion dollar fraud of the FTX Group.&#8221; According to the lawsuit, S&#038;C was aware of the company&#8217;s misconduct and benefited financially from it.<\/p>\n<p>According to <a href=\"https:\/\/twitter.com\/lopp\/status\/1736397634925949114\">compensation documents<\/a> from December 2023, FTX owed the law firm approximately $1.45 billion for overseeing the bankruptcy process.<\/p>\n<p>An anonymous creditor under the pseudonym Rob called the immunity for S&#038;C the &#8220;icing on the cake&#8221; of this plan. He refused to vote for the proposal.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Icing on the cake from the team that destroyed billions of potential value for FTX customers. This can&#8217;t be allow. <\/p>\n<p>I&#8217;m voting NO on this plan<a href=\"https:\/\/twitter.com\/sunil_trades?ref_src=twsrc%5Etfw\">@sunil_trades<\/a> <a href=\"https:\/\/t.co\/RvZbRy62GQ\">https:\/\/t.co\/RvZbRy62GQ<\/a><\/p>\n<p>\u2014 \u2608ob (@SonOfAres__) <a href=\"https:\/\/twitter.com\/SonOfAres__\/status\/1788095950336262646?ref_src=twsrc%5Etfw\">May 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Approval of the compensation plan requires the consent of more than half of FTX&#8217;s creditors. Voting on the document will take place in June.<\/p>\n<p>According to BitGo CEO Mike Belshe, none of the company&#8217;s creditors will accept such a compensation plan.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">0% of FTX creditors agree that receiving $16800 for your bitcoin is fully compensated.<\/p>\n<p>I understand why the bankruptcy process needs to work this way but let&#8217;s not pretend victims are getting their money back or that FTX wasn&#8217;t as awful as it was. <a href=\"https:\/\/t.co\/odVp4rT7hP\">https:\/\/t.co\/odVp4rT7hP<\/a><\/p>\n<p>\u2014 Mike Belshe (@mikebelshe) <a href=\"https:\/\/twitter.com\/mikebelshe\/status\/1788026467034784119?ref_src=twsrc%5Etfw\">May 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;0% of exchange clients agree that receiving $16,800 for bitcoin fully compensates their losses. I understand why the bankruptcy process needs to work this way, but let&#8217;s not pretend victims are getting their money back or that FTX wasn&#8217;t as awful as it was,&#8221; he wrote.<\/p>\n<\/blockquote>\n<p>Previously, former CEO of FTX&#8217;s Bahamian division, Ryan Salame, transferred ownership of his $5.9 million home in the Bahamas to creditors as <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%A0%D0%B5%D1%81%D1%82%D0%B8%D1%82%D1%83%D1%86%D0%B8%D1%8F\">restitution<\/a>.<\/p>\n<p>Back in March, the founder of the trading platform, Sam Bankman-Fried, was <a href=\"https:\/\/forklog.com\/en\/news\/sam-bankman-fried-sentenced-to-25-years-in-prison\">sentenced<\/a> to 25 years in prison. His lawyers <a href=\"https:\/\/forklog.com\/en\/news\/sam-bankman-fried-appeals-his-sentence\">appealed<\/a> the decision.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sunil Kavuri, a representative of the largest group of FTX creditors, has opposed the exchange&#8217;s compensation plan, arguing it limits recipients&#8217; options and absolves certain accused parties of responsibility. FTX Plan Takeaways1) Sullivan and Cromwell included exculpation clause so they + no one involved sued for misconduct2) S&#038;C puppet John Ray in charge with no [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13352,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1309,1236],"class_list":["post-13353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-compensation","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=13353"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13353\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/13352"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=13353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=13353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=13353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}