FTX Victims Seek Ruling That Forfeited Assets Belong to Customers, Not Bankruptcy Estate

Victims of the collapsed crypto exchange FTX have filed a court request in New York seeking a ruling that the exchange's forfeited assets, worth $8 billion, belong to its customers rather than the bankruptcy estate. The filing argues that the bankruptcy code prioritizes certain creditors over others, with holders of FTX's FTT token near the bottom of the priority list. The estate has proposed a reorganization plan that would see 98% of creditors receive 118% of their claims in cash, but many FTX customers are unhappy with this proposal. The filing also notes that the price of Solana and bitcoin has increased significantly since FTX filed for bankruptcy in 2022.