FTX Creditors to Receive Repayments Starting January 3, 2025
FTX and its affiliated debtors have confirmed that the court-approved Chapter 11 reorganization plan will become effective on January 3, 2025. The first round of creditor distributions is expected to take place within 60 days of the plan taking effect.
The company disclosed agreements with BitGo and Kraken to facilitate the distribution process.
FTX creditors will finally receive funds in 2025
According to official NoticeFTX outlined a timeline for first creditor payments more than two years after filing for Chapter 11 bankruptcy. The first group of qualifying claim holders can receive repayment within a specified period of time, subject to certain conditions.
To qualify for the first distribution, creditors must fill out tax documents and work with BitGo or Kraken. For transferred claims, payments will only be made to the registered transferee listed on the official claims register as of January 3.
Additionally, a 21-day objection period must elapse without dispute before these allocations can be processed. Further updates on repayments from other creditor groups are expected in the coming months.
FTX creditors can choose to wire transfer via USD or even Stablecoin. A large portion of these funds were accumulated through lawsuits against several other exchanges and platforms.
“FTX filed a rival lawsuit against Gate (November 24), seeking to recover $40 million to return crypto assets held by the exchange. On-chain transfers show at least $35 million returned to wallets controlled by FTX.” wrote Sunil, the self-proclaimed FTX creditor champion.
FTX also took Legal action against Binance and its former CEOChangpeng Zhao recovers $1.8 billion in funds allegedly misappropriated by Sam Bankman-Fried.
After the news was announced, FTX’s native token FTT soared nearly 10%, hitting its highest valuation in nearly 10 months. one A similar rally took place in November when restructuring plan Approved for the first time.
However, the coin is still down 96% from its 2021 all-time high before the exchange collapsed.
In October, a bankruptcy judge approved FTX’s reorganization plan, allowing the company to repay about 98% of creditor claims, including “convenience class” users with claims under $50,000. These groups are expected to receive repayments early in the distribution process.
The FTX saga is coming to an end
FTX application boneBankruptcy In November 2022, following a liquidity crisis and the resignation of founder and former CEO Sam Bankman-Fried. The bankruptcy case resulted in multiple lawsuits against FTX and Alameda Research executives.
Earlier this year, Sam Bankman-Fried sentenced to 25 years in prison In prison. His partner in crime, former Alameda Research CEO Caroline Ellison Escaped after only 24 months in prison. This was due to Ellison’s extensive cooperation with prosecutors during the Bankman-Fried trial.
at the same time, Gary Wang no jail sentence Despite creating the code that led to Alameda’s $11 billion fraud, he still deserves credit for his cooperation.
earlier this month, U.S. government transfers $33.6 million Cryptocurrencies seized by FTX were deposited into various wallets, which could signal a sell-off. As the case nears its final stages, FTX continues its efforts to recover and distribute assets. This marks an important step towards resolving the issue for affected creditors and users.
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