cyrpto 13b, claims, estate, FTX, prioritizing, process, repayment, small, starts Mark February 19, 2025 0 Comments

FTX estate starts $13b repayment process, prioritizing small claims

The FTX Domaine launched the creditors’ reimbursements on February 18 at 10 a.m., almost three years after the collapse of the crypto exchange.

FTX began to distribute creditors this week, starting with “small complaints” of less than $ 50,000, according to In Sunil Kavara, a representative of the largest group of creditors in the estate.

In October 2024, an American bankruptcy judge approved the FTX reorganization plans after years of legal proceedings. Bitgo and Kraken were selected As a reimbursement partners, while the court ruled that creditors could receive payments in stablescoins if they wanted.

The first phase of reimbursements will pay $ 1.2 billion possible dollars, said Kavara. FTX plans to distribute around $ 13 billion in total to creditors, but the succession aims to keep approximately half of this allowance for complaints disputed by the service.

According to Kavara, reimbursements of small complaints include $ 400 million due to original users of the deceased Crypto Exchange, with complaint buyers representing the other half.

This initial reimbursement exercise covers approximately 162,000 complaints out of approximately 460,000 potential applicants. The process also includes payments to Bahamas based on users, as before reported.

Today FTX REPAYMENTS: complaint <$ 50K
1st distribution: February 18, 2025, 10 a.m.

Complaints <$ 50,000: $ 1.2 billion (120.5%)
~ $ 800 million out of $ 1.2 billion to pay
~ 162K on 460K is.

Approx.
50% original carriers: $ 400 million
50% of complaint buyers: $ 400 million

– Sunil (champion of creditors FTX) (@sunil_trades) February 18, 2025

FTX was founded in May 2019 by the former cryptography magnate Sam Bankman Fried, also known as SBF. By 2021, the Bankman Fried startup was one of the greatest exchanges of digital assets and was considered a rival of the Binance of Changpeng Zhao and the American Coinbase.

The SBF Empire collapsed at the end of 2022 after media reports revealed significant differences in FTX’s assessment. The controversy that followed is paralyzed from Bankman Fried operations, leading the scholarship to file the bankruptcy of chapter 11.

Shortly after, the Bahamas authorities, where the FTX was based, arrested the bank and extradited it in Manhattan.

A judge sentenced the SBF to 25 years in prison for fraud and other criminal charges following a brief trial. Bankman Fried argued for judicial prejudices and asked for a new legal battle. His parents would also have explored A presidential grace of the Donald Trump office.