Victims of FTX view the bankruptcy process as a "second theft," applying to reclaim 8 billion dollars in confiscated assets

According to a report by CoinDesk on June 18, PANews reported that according to documents submitted to the U.S. District Court for the Southern District of New York on Friday, bankruptcy victims of FTX are seeking a ruling demanding that about $8 billion in assets confiscated from this cryptocurrency exchange be returned to customers rather than included in bankruptcy assets. Last month, the bankrupt estate proposed a restructuring plan intending to return 118% of claims in cash form within 60 days after court approval. This move angered FTX customers because their funds were trapped and they could not benefit from rising cryptocurrency prices.

Court documents pointed out that FTX went bankrupt during the "cryptocurrency winter" when cryptocurrency prices plummeted. Since filing for bankruptcy, Solana (SOL) price has soared nine times and Bitcoin price has quadrupled, making it extremely unfair to measure customer claims at its value at that time. Victim lawyers Adam Moskowitz and David Boies said that FTX customers felt robbed and viewed bankruptcy as "a second theft". They believe that the bankrupt estate is no different from businesses operated by SBF (former CEO), who was sentenced to 25 years imprisonment for fraud.

FTX collapsed in November 2022 with a jury finding SBF guilty of stealing at least $8 billion from clients. SBF was also ordered to forfeit $11 billion and plans appeal against this decision. The document states if it weren't for SBF's crimes; clients could have retained their cryptocurrency investments. In addition, bankruptcy law requires priority treatment of certain creditors; holders of FTX's FTT tokens are almost at the bottom of priority order unlikely receiving compensation from bankrupt property.
Moskowitz stated due incomplete accounting calculations damage amount remains uncertain but confirmed damages exceeding $8 billion.