Sunil Kavuri, speaking on behalf of the largest FTX creditor group, has advised against supporting the bankrupt crypto exchange's proposed reorganization plan.

In a recent post on X, Kavuri urged fellow creditors to vote against the plan, reiterating his stance that the estate should compensate creditors with cryptocurrencies rather than dollar equivalents. He asserted that debtors owe FTX customers significantly more than the initial petition amounts, alleging a loss of over $10 billion in value for FTX creditors.

Criticism has been leveled at FTX's debtors for their handling of the estate's assets, particularly the sale of a stake in Mysten Labs and token warrants for the Sui token, which, had they been retained, would now be worth substantially more than the sale price.

Kavuri also referenced an ongoing lawsuit against the estate's law firm, Sullivan and Cromwell, suggesting that the reorganization plan contains provisions shielding involved parties from potential legal action.

FTX's proposed reorganization plan, announced earlier, aims to provide creditors with at least 118% of their allowed claims, with additional compensation for the time value of investments. CEO John J. Ray III expressed satisfaction with the plan, emphasizing the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors.

The plan outlines a repayment schedule within 60 days post-approval, with an estimated distribution value ranging between $14.5 billion and $16.3 billion, pending court endorsement.

The collapse of FTX in November 2022 was attributed to internal mismanagement, culminating in a liquidity crisis. Former CEO Sam Bankman-Fried's subsequent conviction for defrauding customers and investors further tarnished the exchange's reputation.