FTX Bankruptcy Estate distributes $5 billion
The post FTX Bankruptcy Estate distributes $5 billion appeared on BitcoinEthereumNews.com. The FTX Recovery Trust has initiated a second round of payments to its creditors. On May 30, the Trust started a $5 billion payout to eligible creditors in the Convenience and Non-Convenience Classes who have completed the pre-distribution requirements. According to a May 28 announcement, the creditors’ distribution will include Dotcom Customer Entitlement Claims, which are receiving a 72% distribution; US Customer Entitlement Claims, which are receiving a 54% distribution; and Convenience Claims, which will receive a 120% distribution. Additionally, General Unsecured Claims and Digital Asset Loan Claims will each receive a 61% distribution as per the reimbursement plan. Recipients should receive their claims in one to two business days from the official distribution partners, Kraken and Bitgo. Source: Sunil Kavuri Crypto investors and speculators closely monitor FTX creditor distributions as the reimbursements could impact the digital asset markets and cause price volatility if the liquidity from the reimbursements is offloaded or swapped on retail exchanges. Related: Binance seeks to dismiss $1.76B FTX lawsuit, blames SBF for collapse The first round of FTX creditor reimbursements The first round of FTX creditor payments for recipients with less than $50,000 in claims was distributed on Feb. 18 and totaled $1.2 billion. At the time, Alvin Kan, chief operating officer at Bitget Wallet, told Cointelegraph that a “significant portion” of the $1.2 billion could be reinvested back into the crypto markets. When the FTT token and the FTX exchange collapsed in November 2022, it took most of the crypto market down with it. Source: TradingView Reimbursement plan leaves creditors high and dry The FTX reimbursements have sparked controversy among creditors and customers of the now-defunct exchange. In September 2024, FTX creditor Sunil Kavuri shared court documents ruling that FTX creditors would be reimbursed as of the date their petition was filed instead of…
The post FTX Bankruptcy Estate distributes $5 billion appeared on BitcoinEthereumNews.com.
The FTX Recovery Trust has initiated a second round of payments to its creditors. On May 30, the Trust started a $5 billion payout to eligible creditors in the Convenience and Non-Convenience Classes who have completed the pre-distribution requirements. According to a May 28 announcement, the creditors’ distribution will include Dotcom Customer Entitlement Claims, which are receiving a 72% distribution; US Customer Entitlement Claims, which are receiving a 54% distribution; and Convenience Claims, which will receive a 120% distribution. Additionally, General Unsecured Claims and Digital Asset Loan Claims will each receive a 61% distribution as per the reimbursement plan. Recipients should receive their claims in one to two business days from the official distribution partners, Kraken and Bitgo. Source: Sunil Kavuri Crypto investors and speculators closely monitor FTX creditor distributions as the reimbursements could impact the digital asset markets and cause price volatility if the liquidity from the reimbursements is offloaded or swapped on retail exchanges. Related: Binance seeks to dismiss $1.76B FTX lawsuit, blames SBF for collapse The first round of FTX creditor reimbursements The first round of FTX creditor payments for recipients with less than $50,000 in claims was distributed on Feb. 18 and totaled $1.2 billion. At the time, Alvin Kan, chief operating officer at Bitget Wallet, told Cointelegraph that a “significant portion” of the $1.2 billion could be reinvested back into the crypto markets. When the FTT token and the FTX exchange collapsed in November 2022, it took most of the crypto market down with it. Source: TradingView Reimbursement plan leaves creditors high and dry The FTX reimbursements have sparked controversy among creditors and customers of the now-defunct exchange. In September 2024, FTX creditor Sunil Kavuri shared court documents ruling that FTX creditors would be reimbursed as of the date their petition was filed instead of…
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