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FTX to begin creditor reimbursements in March 2025

FTX to begin creditor reimbursements in March 2025

GrafaGrafa2024/11/22 07:00
By:Liezl Gambe

The FTX (CRYPTO:FTT) bankruptcy estate has announced that reimbursements to creditors and former customers will commence in March 2025.  

This follows two years of bankruptcy proceedings and the recent approval of the estate’s reorganisation plan.  

According to the November 21 update, FTX will finalise arrangements with distribution agents in December 2024 to handle the payout process and manage a customer reimbursement portal.  

"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," emphasized interim CEO John J. Ray III.  

However, not all creditors are satisfied with the payout structure.  

A group of creditors, led by Sunil Kavuri, criticised the plan for basing reimbursements on asset values at the time of the bankruptcy petition.  

For instance, Bitcoin was trading at approximately $16,000 during the filing, significantly lower than current prices.  

In addition to preparing payouts, the FTX estate has pursued multiple lawsuits to recover assets.  

In October 2024, it filed a $50 million lawsuit against KuCoin, alleging the exchange held assets belonging to the estate.  

Further lawsuits have been filed against Crypto.com to reclaim $11 million and SkyBridge Capital to recover $100 million related to sponsorship and investment agreements.  

Binance and its founder Changpeng Zhao are also facing a $1.8 billion lawsuit over allegations of receiving fraudulent transfers before FTX’s collapse.  

While the reimbursement timeline marks a significant step forward, the estate remains embroiled in litigation aimed at maximising recoveries.  

The combination of planned payouts and ongoing legal actions reflects FTX's efforts to resolve creditor claims and recover additional funds.  

At the time of reporting, the FTX Token (FTT) price was $2.78.  

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