Customers Express Dissatisfaction with Proposed Reimbursement Plan
Following the submission of a proposal by FTX estate debtors to reimburse customer assets based on their value as of Nov. 11, 2022, numerous objections have been raised by customers. A notable objection comes from an FTX client in France, who criticizes the estate for "depleting creditor funds by imposing exorbitant charges for their services." This customer expresses dissatisfaction with the compensation in fiat currency, particularly given the valuation of crypto assets at a point when "markets were at their lowest in years."
FTX Clients Disapprove of Compensation in Fiat Currency
FTX clients have expressed significant dissatisfaction with the company's reorganization plan, which proposed compensating customers in fiat currency based on the value of their crypto assets as of Nov. 11, 2022 — the day the now-insolvent crypto exchange declared Chapter 11 bankruptcy. For example, while bitcoin (BTC) currently trades just above $40,000, the "Digital Asset Conversion Table" values it at only $16,871 per coin. Following this proposal, the bankruptcy court docket has been inundated with several objections.
Losses and Fees Create Controversy
A customer from Portugal has pointed out that the bankruptcy process is causing "significant losses for creditors." This client claims that "$500 million in fees" have been deducted, which he believes should instead be used to benefit the customers. He observes that this situation creates an incentive for certain parties to prolong the proceedings, thereby accumulating more fees. Moreover, this Portuguese individual argues that setting the value of crypto assets based on their Nov. 11, 2022, prices contradicts the terms of service (ToS).
Accusations of Theft and Unfair Prejudice
Meanwhile, a French customer contends that reimbursing creditors based on the November 2022 valuation of their crypto effectively equates to "stealing" from the victims. In a letter to Judge Dorsey, this customer urges the judge to "intervene" to avert what they describe as a "second theft." Another objector disputes the conversion table, noting that their claim's value is 2.55 times higher than the specified date. They argue that approving this proposal would "unfairly prejudice a significant class of customers." This client further points out that the FTX ToS clearly states that the crypto assets belong to the owners and should never have been co-mingled with other funds.
Objections and Alternative Suggestions
Ever since its unveiling in December 2023, the proposal has been met with a steady stream of objections, accumulating in the court docket hosted by the Kroll Restructuring Administration. Numerous creditors have submitted letters, suggesting various alternatives for the judge to consider, rather than adhering to the estate's proposed strategy. Alongside these objections, there's also a notable trend of claims being transferred to different entities. Current market values for FTX claims show sellers asking for $0.77 on the dollar, while bids are coming in at around $0.72.
What do you think about the objections to the proposed FTX reimbursement plan? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
What is a Precious Metal IRA?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion is often used to refer to precious metals. Bullion is the physical metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. You'll get dividends each year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, your gains are subject to a small tax. Plus, you can access your funds whenever you like.
What are the fees associated with an IRA for gold?
A monthly fee of $6 for an Individual Retirement Account is charged. This includes account maintenance and any investment costs.
If you want to diversify, you may be required to pay extra fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge an annual management fee. These fees are usually between 0% and 1%. The average rate is.25% annually. However, these rates are typically waived if you use a broker like TD Ameritrade.
What is the best precious metal to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if you need a quick profit, gold may not be for you. If you have time and patience, you should consider investing in silver instead.
If you're not looking to make quick money, gold is probably your best choice. If you want to invest in long-term, steady returns, silver is a better choice.
Is buying gold a good option for retirement planning?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
Physical bullion is the most popular method of investing in gold. However, there are many other ways to invest in gold. It is best to research all options and make informed decisions based on your goals.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow to finance your investment, then gold stocks could be a good option.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs can include stocks of precious metals refiners and gold miners.
How much should precious metals make up your portfolio?
Before we can answer this question, it is important to understand what precious metals actually are. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
There are also many other precious metals such as platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also not affected by inflation and depression.
In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors are more likely to expect lower interest rates making bonds less attractive investments.
When the economy is healthy, however, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Because they are rare, they become more pricey and lose value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
irs.gov
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
cftc.gov
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads. Example. And Risk Metrics
How To
A growing trend: Gold IRAs
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
Owners can invest in gold bars and bullion with the gold IRA. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
An investor can use a gold IRA to manage their assets and not worry about market volatility. They can also use the gold IRA as a protection against potential problems like inflation.
Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
Investors looking for financial security are increasingly turning to the gold IRA.
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By: Jamie Redman
Title: FTX Reimbursement Plan Faces Objections from Dissatisfied Customers
Sourced From: news.bitcoin.com/ftx-payment-plan-faces-backlash-clients-slam-2022-asset-valuation-as-theft-urge-court-for-fair-redress/
Published Date: Mon, 22 Jan 2024 19:00:35 +0000
Did you miss our previous article…
https://altcoinirareview.com/bitcoin-plummets-below-40k-for-first-time-in-48-days-triggering-market-wide-crypto-slide/
