Bankruptcy Repayments of More Than $5 Billion from FTX Set for This Month
Spill the Beans on FTX Creditors' Sweet Deal
Hey there, folks! Get your wallets ready! The FTX creditors are about to receive some serious dough – over $5 billion – beginning on May 30, according to the FTX Recovery Trust.
This money-dropping extravaganza marks the second phase of the FTX bankruptcy plan, and four groups of creditors will be grabbing the cash. The fine print? The distributions range from 54% to 102% of their FTX holdings' worth, which went poof when the exchange crumbled back in November 2022.
John J. Ray III, the FTX Recovery Trust plan administrator, got pretty darn excited about things and said, "These first non-convenience class distributions are an important milestone for FTX." He's right – this is a pretty huge deal for those trying to recoup their losses.
Are you curious about who's getting what? Well, here's a quick rundown:
- Members of Class 5-a (which includes Alameda Research and its pals) can expect between 54% and 72% of their claims.
- Small, unsecured claimants are looking at 61% in their pockets.
- Inter-company interests, on the other hand, will be laughing all the way to the bank with a 120% payday.
BitGo and Kraken will drop the funds into your account within one to three business days from May 30.
The second round of claims distributions comes amid a bit of a crypto resurgence. Since the recovery process started three years ago, the U.S. government has given the green light to Ethereum and Bitcoin ETFs trading, and both state and federal governments, along with public companies, have tossed ideas around for digital asset-based reserves. To top it all off, the SEC has put an end to most of its investigations against – and cases against – crypto firms.
In conclusion, the crypto world is heating up again, and FTX creditors are finally about to see some much-deserved financial relief. Keep an eye on your inbox (and bank account) for the dough starting May 30!
[1] Percentage calculations based on USD value of assets at the time of FTX's bankruptcy filing.[5] Recovery rate calculations may vary based on the specific claim category. For more information, check out the FTX Recovery Trust's website.
- The FTX creditors, including Alameda Research, are anticipated to receive distributions ranging from 54% to 120% of their FTX holdings' worth, starting May 30th.
- Small, unsecured claimants can expect to receive 61% of their claims from BitGo and Kraken.
- Inter-company interests are looking forward to a 120% payday in the FTX creditors' second phase of distributions.
- The FTX bankruptcy plan's second phase includes a total distribution of over $5 billion to four groups of creditors.
- The crypto resurgence, marked by approval of Ethereum and Bitcoin ETFs, increasing interest in digital asset-based reserves, and resolution of SEC investigations against crypto firms, parallels the FTX creditors' recovery process.
- The FTX Recovery Trust's website provides further information on the distribution calculations for specific claim categories.
