After a lenghty and demanding process following its dramatic collapse, the FTX repayments will be starting today with $16B in total to redistribute. This is a key milestone for creditors waiting to recover their assets. The FTX estate, which manages the bankruptcy proceedings of the collapsed crypto exchange, had stated in December that it plans to begin repayments within 60 days of the effective date.
Although the estate estimates that total distribution will range between $14.7 billion and $16.5 billion, the first payout will be lower, focusing on convenience classes with allowed claims of $50,000 or less.
These creditors are expected to receive approximately 119% of their allowed claim amount, including principal and accrued interest, within 60 days. As per the plan, this amounts to roughly $1.2 billion in total.
Sunil Kavuri, a prominent advocate for FTX creditors shared in an X post that creditors with claims exceeding $50,000 will receive a share of a separate $10.5 billion pool. The distribution timeline for this group will take longer.
BitGo and Kraken have been designated to manage initial distributions to retail and institutional customers in supported jurisdictions.
He also shared that the FTX customers must complete KYC verification, submit tax forms through the FTX Debtors’ Customer Portal, and choose either bitgo
Notably, analysts estimate that $2.4 billion may flow back into crypto markets following the plan’s execution. The analysts note that $3.9 billion of total claims were acquired by credit funds, which are unlikely to reinvest in crypto assets. Moreover, 33% of remaining claims belong to sanctioned countries, insiders, or individuals without KYC verification who may be unable to claim funds.
SOL, the native token of the Solana blockchain, seems to be shifting its bearish market…
Despite the bearish market sentiment, crypto whales are showing strong interest in Ethereum (ETH). Data…
March 2025 – In the dynamic world of trading, a solid understanding of key terms…
Even after Pi Network's listings on significant exchanges, its price swings and ongoing essential developments…
The cryptocurrency market has once again found itself under the spotlight, with Cardano (ADA) seeing…
Pi Coin has dropped to an all-time low of $0.51, marking an 83% drop since…