[Lunch Briefing] US Court Approves FTX Bankruptcy Plan… Creditor Payments Begin

Major virtual assets are in decline.

At 1:37 PM on the 8th, Bitcoin (BTC) recorded 84,609,000 won on Bithumb, down 1.2% from the previous day. Ethereum (ETH) fell 1.44% from the previous day to 3,296,000 won, Binance Coin (BNB) fell 0.45% to 770,000 won, Solana (SOL) fell 3.13% to 195,200 won, and Ripple (XRP) fell 0.69% to 720 won.



The international market is also down. At the same time, CoinMarketCap recorded BTC at $62,735.21, down 1.35% from the previous day. ETH was trading at $2,443.38, down 1.91%, BNB at $570.47, down 0.72%, SOL at $144.69, down 3.57%, and XRP at $0.5341, down 1.35%.

The total market capitalization of virtual assets decreased by 1.45% from the previous day to $2.18 trillion (approximately KRW 2,940.384 trillion). The fear and greed index of virtual asset data provider Alternative.me is at 49 points, down 1 point from the previous day, and is in a ‘neutral’ state.

A U.S. court has approved the bankruptcy plan of cryptocurrency exchange FTX.

According to foreign news on the 8th (local time), the Delaware Federal Bankruptcy Court approved FTX's bankruptcy plan the day before. Accordingly, small creditors with assets of less than $50,000 tied up will be able to get their assets back within 60 days of the bankruptcy filing. The bankruptcy filing date has not been set yet. It is known that 98% of FTX's creditors are small creditors.

Creditors are expected to receive cash equivalent to an average of 118% of the value of the assets they held as of November 2022, when FTX filed for bankruptcy. However, some creditors are opposing this cash repayment method. They argue that since the price of virtual assets has risen significantly since FTX filed for bankruptcy in late 2022, creditors should receive back the same amount of virtual assets they held at the time of bankruptcy. The price of BTC, which is currently around $63,000, was only $16,000 in November 2022.

Reporter Kim Jeong-woo

woo@decenter.kr