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FTX Payout Plan Officially Takes Effect Today, a Key Milestone for Creditors
Today marks a crucial milestone in the ongoing bankruptcy proceedings of FTX. The FTX payout plan has officially taken effect, bringing relief to creditors who have been waiting anxiously for their share of the $16 billion total distribution.
The repayment process, which was initially expected to begin within 60 days after the effective date, will prioritize convenience class holders with claims of $50,000 or less. These individuals are expected to receive approximately 119% of their allowed claim amount, including principal and accrued interest, within this timeframe.
It’s essential for FTX customers and other creditors to complete crucial steps before the distribution record date. This includes Know Your Customer (KYC) verification, submitting tax forms through the FTX Debtors’ Customer Portal, and choosing either BitGo or Kraken as their designated distribution manager.
It is estimated that this payout plan may lead to a significant influx of $2.4 billion back into crypto markets once it is executed. However, analysts have noted that $3.9 billion of total claims have been acquired by credit funds, which are unlikely to reinvest in crypto assets. Furthermore, 33% of remaining claims belong to sanctioned countries, insiders, or individuals without KYC verification who may be unable to claim their funds.
The involvement of reputable firms like BitGo and Kraken as distribution managers provides an added layer of transparency and trust in the repayment process. This development is a significant step towards healing for those affected by FTX’s collapse, and we will continue to monitor this situation closely.
FTX Payout Plan Officially Takes Effect Today, a Key Milestone for Creditors
Source: coinpedia.org
