FTX's recent proposal to launch with a 25% yield sparked controversy within the crypto community, particularly regarding the inclusion of an exculpatory clause. This clause raised concerns among investors, such as Rob, a pseudonymous FTX creditor and the head of growth at Paradex. Rob expressed his disapproval in a May 8 post, highlighting his intention to vote against the plan due to its association with the team's previous actions that led to significant losses for FTX customers.

While FTX debtors promised to provide an 11% payout to over 98% of creditors and offer additional compensation to the remaining creditors, this gesture was met with skepticism by some. The compensation structure, which is based on a $16,800 valuation of Bitcoin at the time of the collapse, is deemed inadequate by critics, given Bitcoin's subsequent appreciation in value.

Mike Belshe, CEO of BitGo, echoed these sentiments, stating that none of the FTX creditors find the proposed compensation satisfactory. In his May 8 post, Belshe emphasized that receiving $16,800 for Bitcoin holdings does not constitute full compensation for the losses incurred. He acknowledged the necessity of the bankruptcy process but cautioned against misleading portrayals of the situation, stressing that victims are not recovering their losses entirely and that FTX's past actions cannot be overlooked.

In summary, FTX's amended plan faces resistance from creditors and industry figures alike, who question the adequacy of the proposed compensation and express concerns about the exculpatory clause. The controversy surrounding the plan underscores broader issues within the crypto space regarding accountability and investor protection.