The FTX bankruptcy estate announced an updated schedule for repayments to creditors and former customers, with the goal of finalizing claims by January 2025.
Upfront Payments are expected start in March 2025, according to a 21 November 2024 statement from defunct crypto exchange.
To streamline the process, FTX plans to collaborate with distribution agents starting in December 2024. These agents will manage the payment system and oversee the customer redemption portal.
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FTX CEO vows to return funds quickly
Interim CEO John J Ray III expressed domain commitment to return funds promptly.
“WAs we continue to take steps to maximize collections, we are full steam ahead to reach agreements with our distribution agents and return proceeds to creditors and customers as quickly as possible.» Ray said.
Although the reorganization plan received court approval in October, it faced opposition from some creditors. A group led by Sunil Kavuri criticized the plan. He argued that the reimbursement amounts have been calculated based on the petition date, when cryptocurrency prices were significantly lower.
For example, Bitcoin was trading around $16,000 at the time, compared to its current value.
#FTX to start paying creditors!
Two years after the blockchain implosion, FTX says it is ready to start paying out $16.5 billion for abandoned users.
But here’s the interesting part: Payments are stuck at November 22 crypto prices – Bitcoin at $20,000, ETH at $1.2k – leaving users destroyed. pic.twitter.com/s7ZVdq9RB8
— MemeWhale
(@meme__whale) November 22, 2024
(@meme__whale) In its quest to recover assets, the FTX estate has filed a lawsuit against various parties. Notably, a lawsuit was filed against KuCoin to recover $50 million in assets allegedly stuck on the exchange since FTX collapse in 2022.
Similarly, in November 2024, the estate filed a lawsuit against Crypto.com to recover $11 million in funds.
Leading individuals and companies have also been targeted. The 8 November 2024FTX has filed a lawsuit against Anthony Scaramucci and his company, SkyBridge Capital. He is seeking to recoup $100 million spent on sponsorships and investments involving former CEO Sam Bankman-Fried.
Binance and its founder, Changpeng Zhao, face a $1.8 billion lawsuit. These include allegations of receiving $1.76 billion in fraudulent transfers. Before FTX fall.
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FTX settles lawsuit with Bybit and obtains $228 million
In October, the mass of FTX bankruptcy reached a $228 million settlement with cryptocurrency trade Bybit to recover the funds needed to repay FTX’s former customers and creditors.
Under the terms of paymentFTX will reclaim $175 million in digital assets held by Bybit, along with an additional $53 million in BIT tokens, which will be sold to Mirana Corp, Bybit investment arm.
FTX initially launched a billion-dollar lawsuit against Bybit and Mirana in late 2023, alleging that these entities used special privileges and “VIP» access to preemptively withdraw $327 million in digital assets and cash in the days leading up to FTX fall.
Lawyers for FTX The estate argued that Bybit and Mirana received priority access to withdrawals from FTX executives, which could influence the domain financial losses during its collapse.
The approval of FTX reorganization plan earlier in October by Judge John Dorsey gave a boost to these recovery efforts.
Additionally, FTX investors recently dismissed their lawsuit against Sullivan & Cromwell, the law firm which represented cryptocurrency exchange, after accusing him of complicity in the the exchanges suspected fraudulent activities.
EXPLORE: FTX Settles Lawsuit With Bybit, Gets $228 Million To Help Repay Creditors
Warning: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose your entire capital.
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