The US Department of Justice (DOJ) decided to review the existing regulations during the return of digital assets to the victims after fraud and theft cases. In the official note issued on Monday, the Ministry re -re -re -re -re -re -referring to FTX and similar high -profile bankruptcy files, and reopened whether fixed payments were fair. In the current system, victims receive payment over the market value at the moment they lose their existence; However, this approach causes serious criticism, considering the high volatility of the crypto currency market.
Refunds with fixed value attracts reaction
According to the current practices in the United States, victims of digital assets are generally paid at the market value on the history of loss. Although this method seems fair within the framework of classical bankruptcy law, it is especially criticized for the excessive playful structure of the crypto currency market. As seen in bankruptcy cases such as FTX, Celsius and Voyager, many victims have lost their assets that have gained serious value over the years, but only to receive payment at the previous low price. This caused great dissatisfaction among the victims.
Lawyer Calvin Koo says that this approach can distract the process from being fair. According to him, due to the difference in timing, some victims are deprived of significant gains, while others can give advantage from the system. The opinion that judges should be granted more discretionary authority in this regard is increasingly finding more and more support.
FTX example is on the agenda again
In the legal processes that started after the FTX bankruptcy, the court decided to pay victims over the fixed USD equivalents. However, especially after 2023, the rally in the crypto currency market significantly increased the value of these assets. For this reason, victim investors demanded that the crypto currencies in their hands be returned. But this approach also creates new risks due to harsh fluctuations of crypto money prices.
Expert lawyer Evelyn Baltodano Sheehan argues that the current system aims to prevent the grievances in the long run, but with the recent market developments, it has become inevitable to update this structure. More than 300 victims have submitted official petitions for losses due to fixed valuation. Doj states that a new system can be shaped by federal law changes and judicial decisions in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
