Bankrupt crypto exchange FTX is seeking court approval to settle its customers' digital asset claims in US dollars, according to a court filing.
FTX Faces Backlash After Suggesting Paying Customers' Bitcoins at $16K
FTX argues that these prices reflect fair and reasonable prices of these cryptocurrencies.
The exchange explained that the action was necessary to prevent any obstruction in bankruptcy proceedings and added:
“Liquidation of each and every Claim relating to a Digital Asset is impractical and unnecessary and would unnecessarily delay Chapter 11 Cases.”
Therefore, the defunct crypto platform offered to value Bitcoin at $16,871, Ethereum at $1,258, and Solana's SOL at $16.
The firm also pegged Avalanche's AVAX at $14.19, while stablecoins USDT, TUSD, and BUSD are a few cents less than their usual $1 peg.
The value of many of these digital assets, excluding stablecoins, has skyrocketed amid last year's significant market rally.
For context, BTC is currently trading above $40,000, while ETH's value has also surpassed $2,200. SOL is also trading above $100.
However, FTX argued that its valuations represented a fair and reasonable value of these digital assets as of November 11, 2022, the date of the petition.
*This is not investment advice.