FTX creditor representative: Compensation should be paid in physical form in cryptocurrency, not in dollar value

The "FTX bankruptcy plan" has been criticized by Sunil Kavuri, the representative of the largest FTX creditor group. Kavuri said that when FTX files for bankruptcy in 2022, the asset manager to be liquidated should be paid in physical cryptocurrency rather than in dollar value. Lawyer David Adler, who represents some of the creditors, also told the court that creditors would face huge taxes if they were paid in cash rather than in kind.
Previously reported, Delaware Bankruptcy Court Judge John Dorsey approved the bankruptcy plan of cryptocurrency trading platform FTX to start the process of distributing funds to creditors. Under the FTX bankruptcy plan, 98% of creditors will receive about 119% of the value of their claims in cash within 60 days after the liquidation plan takes effect. Between $14.70 billion and $16 billion of funds will be returned to creditors. Debtors will separately announce the effective date of the plan and the expected first distribution date at an appropriate time.