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FTX to Begin $11.4 Billion Creditor Repayments on May 30
Cryptocurrency exchange FTX will commence repayments of $11.4 billion to major creditors starting from May 30, 2025, according to recent updates. Notably, the repayment claims are based on cryptocurrency values as of November 2022, when Bitcoin’s price ranged between $16,000 and $21,000.
The astonishing surge in cryptocurrency prices since then has led some creditors expressing discontent with this valuation approach. Despite the cash repayments being expected to total 118-119% of their claim value, a few creditors had hoped for repayment in cryptocurrency instead. Unfortunately, a court-enforced cash settlement appears to have dashed these expectations.
While major creditors will begin receiving payments from May 30 onwards, smaller debtors with claims under $50,000 have already started receiving their payments. The exchange’s bankruptcy attorney, Andrew Dietderich, has confirmed this timeline.
FTX’s journey toward repayment has been marked by challenges and setbacks. Despite facing a staggering total of “27 quintillion” submissions, the bankruptcy team is currently addressing billions of questionable claims. These disputes may cause delays in the full distribution process.
As creditors wait for their payments, they are earning an annual interest rate of 9%. This creates an incentive for FTX to swiftly resolve these issues and distribute funds.
In a separate development, the exchange’s founder, Sunil Kavuri, has acknowledged the emotional closure that repayments will bring to many individuals affected by this ordeal. However, he expressed concerns over the petition date price valuation.
Source: https://blockonomi.com/ftx-to-begin-11-4-billion-creditor-repayments-on-may-30/
