FTX Bankruptcy Estate Aims for Timely March 2025 Distributions
Initial payouts are anticipated in March 2025, according to the FTX bankruptcy estate‘s revised plan for the creditor and former customer reimbursements, which should be completed in January 2025. FTX will arrange reimbursement payments in early December with distribution agents that will oversee the customer refund portal and execute the payout procedure, the failed cryptocurrency exchange announced on November 21.
While we continue to take actions to maximize recoveries, we are full steam ahead to reach arrangements with our distribution agents and return proceeds to creditors and customers as quickly as possible.
John J. Ray III, the interim CEO presiding over the FTX bankruptcy
FTX Creditors Criticize Repayment Plan Based on Outdated Asset Valuations
The FTX bankruptcy estate filed several lawsuits in an effort to recoup additional assets because not all FTX creditors were satisfied with the reorganization plan, even though a US judge had approved it in early October. The repayment plan was previously criticized by a group of FTX creditors led by Sunil Kavuri since the payout amounts were determined on the petition date when the prices of digital assets were significantly lower than they are today. In contrast, when the creditor petition was filed, the price of Bitcoin was around sixteen thousand dollars.
Beginning with a lawsuit against the KuCoin exchange, the FTX estate increased the number of lawsuits it filed against cryptocurrency exchanges in October that were allegedly hoarding assets that belonged to the bankruptcy estate. The action aimed to reclaim assets worth around $50 million that were purportedly locked on the exchange following FTX’s demise in 2022. In order to recover $11 million in funds, the bankruptcy estate later filed a complaint against Crypto.com in November.
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