Categories: MarketsMenafn

FTX Lawyers Challenge Disclosure Plan

FTX Class action lawyers, Moskowitz Law Firm and Boies Schiller Flexner LLP, representing thousands of plaintiffs in the multi-district litigation against FTX, have objected to the proposed disclosure plan for FTX Trading Ltd. and its affiliates.

According to a recent tweet from the lawyers, the recovery figures need to be more accurate and account for the increase in cryptocurrency values since the Petition Date, thus not satisfying the complete disclosure requirements mandated by Bankruptcy Code 1125.

Plaintiffs Challenge FTX Reorganization Plan; Citing Misleading Recovery Figures

Moskowitz Law Firm and Boies Schiller Flexner LLP claim the FTX plan’s promise of a “full recovery” is deceptive. The plan proposes returning 129% of customers’ cryptocurrency account values as of the Petition Date, when Bitcoin was valued at around $17,000, compared to its current value of $70,000. This means customers would not receive the actual value of their losses.

The MDL Plaintiffs argue their litigation offers a better path for full economic recovery by targeting non-debtor defendants under different legal theories. They dispute the plan’s Anti-Double-Dip Provision, which implies that any recovery from the MDL would duplicate the reorganization plan’s recovery. The plaintiffs contend that MDL claims are against non-debtor entities for different legal violations and do not duplicate recoveries under the plan.

The objection calls for the Disclosure Statement to clarify whether the Anti-Double-Dip Provision precludes further recoveries. Additionally, the MDL Plaintiffs criticize the debtors for not including Robert J. Cleary’s Examiner Report findings in the Disclosure Statement.

This report identifies potential causes of action and unresolved issues crucial for creditors. The objection demands transparency regarding how these findings impact the reorganization plan.

Sinohope Recovers 108% of FTX Deposits

Sinohope, which had $18.1 million in deposits on FTX when it collapsed in November 2022, has recovered 108% for its assets through a recent deal.

Additionally, in a recent auction from the FTX bankruptcy estate, Pantera Capital successfully bid on a new batch of Solana (SOL) tokens, securing 2,000 tokens at a discounted price. The cryptocurrency investment firm remains actively involved in the ongoing liquidation process of the defunct exchange FTX.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Franklin Morgan & Associates Successfully Represented in DIAC Arbitration for $113M Award

New York, NY, 1st August 2025, Franklin Morgan & Associates is proud to announce that…

2 hours ago

Mint Miner Launches XRP Cloud Mining Contracts, Opening a Low-Entry, High-Yield Model

New York, USA, 1st August 2025, ZEX PR WIRE, Mint Miner, the world’s leading intelligent cloud mining…

2 hours ago

Moonshot MAGAX Presale Goes Live — Built for Virality, Fueled by Community

California, USA, August 1, 2025, After months of building behind the scenes, Moonshot MAGAX  is…

2 hours ago

Find Mining Rises to the Trend: A Mass Mining Revolution in the $4 Trillion Market

Combining cloud computing with artificial intelligence, Find Mining delivers a secure, efficient, and transparent way…

2 hours ago

XRP has surpassed the $3.60 mark, and Ripplecoin mining allows holders to easily cash in their daily gains.

XRP Enters a Key Breakout Window; Ripplecoin Mining Helps You Start a Crypto Cash Flow…

2 hours ago

Blockchain is booming again, and ETH and XRP holders are using InvroMining to increase their income

London, UK, 31st July 2025, ZEX PR WIRE, As a global leader in blockchain financial…

1 day ago