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FTX Plans $11.4B Payout—Who’s Getting Paid First?
In the aftermath of the FTX collapse, the exchange has announced a massive payout plan worth $11.4 billion. However, with over 1 million creditors, it’s unclear who will get paid first.
As the crypto market continues to grapple with the fallout of the FTX implosion, the focus has shifted to the massive payout plan that the exchange plans to execute. In a move that has sent shockwaves throughout the industry, the exchange announced plans to distribute $11.4 billion in assets and funds to creditors.
However, as the dust settles on this unprecedented move, many are left wondering who will receive payment first. With over 1 million creditors waiting to get paid, it’s clear that this payout plan won’t be a straightforward process.
FTX owes money to a diverse range of stakeholders, including investors, customers, and other businesses. In order to prioritize payments, the exchange is said to be working closely with its lawyers and financial advisors to develop a repayment strategy.
One group that may receive priority payment is FTX’s employees. Reports suggest that the exchange has set aside a significant amount for employee compensation packages. With many staff members having lost their jobs following the collapse, this move could provide some much-needed financial support during these uncertain times.
Another key stakeholder who may receive early payments are FTX’s customers. The exchange is said to have set aside a portion of its assets to compensate users who were affected by the implosion. This would include those who had their accounts frozen or lost access to their funds due to the collapse.
FTX’s investors, including major players like Alameda Research and other hedge funds, may also receive payment first. However, it’s unclear how much of this payout will go towards satisfying these obligations.
Other businesses that FTX owes money to, such as vendors and partners, are likely to be paid last. While they are important stakeholders in the FTX ecosystem, their claims may take a backseat to other priority groups like employees and customers.
The pace at which payouts occur is also uncertain. FTX has not provided a timeline for when payments will begin or how long it will take to complete the payout plan. However, given the sheer scale of the financial obligations at play here, it’s likely that this process will take months if not years to complete.
FTX’s bankruptcy proceedings are ongoing, and it remains unclear which creditors will receive payment first. One thing is certain, though – this payout plan marks a significant turning point for those affected by the exchange’s collapse, and many eyes are on FTX as they navigate this complex and unprecedented situation
Source: https://e-cryptonews.com/ftx-plans-11-4b-payout-whos-getting-paid-first/
