The FTX Saga Continues: Victims Combat for Their Share of the Spoils

• FTX victims requested that $8 billion in forfeited property be returned to clients.
• AI tokens dropped 30% previously week, coinciding with a peak in AI curiosity on Google Tendencies.
• PolyMarket betters predict a 32% probability of a handshake between Biden and Trump on the first 2024 presidential debate.

Victims within the FTX chapter case have filed a movement within the U.S. District Court docket for the Southern District of New York, asserting that $8 billion of the corporate’s forfeited property must be returned to clients, not the chapter property.

The submitting comes amid ongoing debate over FTX’s proposed reorganization plan and considerations over the influence of the chapter course of on buyer recoveries. The property lately proposed a 60-day reorganization plan to disburse 118% of claims to 98% of collectors pending courtroom approval.

Nonetheless, many FTX clients have opposed this determination, having missed the chance to revenue from the crypto worth surge resulting from restricted funds. The victims’ attorneys, Adam Moskowitz, and David Boies, argued that the chapter course of has left FTX clients feeling aggrieved, viewing it as a second act of theft.

“FTX clients really feel ‘aggrieved and robbed,’ lots of whom view the chapter course of as a ‘second act of theft,’” the attorneys said, including that the “’FTX chapter property stays to be the identical fraudulent company entity’ as was the enterprise run by SBF.” 

The courtroom submitting revealed that FTX declared chapter throughout the 2022 crypto winter, throughout which digital property skilled a major dip. Due to this fact, pegging buyer compensation to the market costs on the time of chapter can be unfair. The submitting maintained that Solana and Bitcoin had elevated considerably for the reason that chapter petition date.

In separate information, knowledge confirmed a 30% dip in AI tokens, together with Fetch.ai and Render, over the previous week. Google Tendencies knowledge counsel that is possible resulting from a peak in public curiosity in AI. Traditionally, spikes in crypto-related Google searches have coincided with main market tops. Final week, AI search queries peaked at 100, matching the best degree noticed previously 5 years.

In the meantime, the primary 2024 presidential debate is about for June twenty seventh, with PolyMarket punters betting on a handshake between President Biden and former President Trump. Present betting outcomes present solely a 32% probability of a handshake taking place.