The law firms representing thousands of investors in the FTX class action lawsuit have filed an objection to the proposed reorganization plan for FTX Trading Ltd. and its affiliates. They argue that the plan's recovery figures are misleading and fail to account for the significant appreciation in cryptocurrency value since the bankruptcy filing.

The lawyers claim that the plan's promise of a "full recovery" is deceptive, as it only returns a portion of the value of customers' cryptocurrency accounts based on the value at the time of the bankruptcy filing, rather than their current value. They also argue that the plan's anti-double-dip provision is misleading and could prevent investors from seeking further recovery through the class action lawsuit.

The objection also criticizes the debtors for not including the findings of the examiner's report in the disclosure statement, which identifies potential causes of action and unresolved issues that creditors need to understand. The lawyers demand transparency and clarity on how these findings impact the reorganization plan.

Furthermore, the objection raises concerns about creditor representation and good faith, as the plan proposes a consolidated wind-down trust without creditor representation on the wind-down board. The lawyers also question the involvement of Sullivan and Cromwell, a defendant in the class action lawsuit, in drafting the plan, citing potential conflicts of interest.

In conclusion, the lawyers for FTX investors have raised significant objections to the reorganization plan, citing misleading recovery figures, lack of transparency, and concerns about creditor representation and good faith. These objections highlight the need for a fair and transparent process that prioritizes the interests of investors and creditors.