The FTX Estate closed the creditor repayment at the eastern time on February 18 at 10 am on February 18, nearly three years after the Crypto Exchange collapsed.
FTX began distributing funds to creditors this week, which began with “small claims” of less than $ 50,000, According For Sunil Kavara, representative of Estate’s largest creditor group.
In October 2024, an American bankruptcy judge approved the reorganization plans of FTX after years of court proceedings. Bitgo and Crackon were selected as repayment partners, while the court ruled that the creditors may receive payment in Stabecin if they wish.
Kavara said that the first phase of reimbursement would pay $ 1.2 billion $ 800 million. FTX plans to distribute a total of $ 13 billion to the creditors, but the objective of the property is to maintain about half of that allocation for service to disputed claims.
According to Kavara, repayment of small claims includes $ 400 million outstanding to the original users of the defunk Crypto Exchange, in which claim buyers accounting for the other half.
This early repayment exercise involves approximately 162,000 claims from the estimated 460,000 potential claimants. The process also involves payment to the Bahamas-based users, as stated earlier.
The FTX was established in May 2019 by former Crypto Tycoon Sam Bankman-Fride, also known as SBF. By 2021, Bankman-Fride’s startup was one of the largest digital asset exchanges and was seen as a rival of Changpeng Jhao’s Binens and US-based coinbase.
Following media reports, the SBF empire revealed significant anomalies in the FTX’s balance sheet. The upcoming controversy crippled the operation of the bankman-Friday, making the exchange a pioneer to file for chapter 11 bankruptcy.
Shortly thereafter, the authorities in Bahamas, where FTX based, arrested the bankman-Friday and extradited it in Manhattan.
A judge sentenced SBF to 25 years in jail for fraud and other criminal allegations after a brief case. Bankman-Fride has argued for judicial prejudice and requested a new court fight. His parents have also allegedly discovered a presidential post from Donald Trump’s office.
