The creditors of the bankrupt cryptocurrency exchange FTX are slated to start receiving their first payouts by the end of 2024. This decision was made in a meeting by the liquidators of FTX Digital, as reported by The Block, citing relevant documents.
The bankruptcy procedure involves two separate processes running concurrently: the Chapter 11 bankruptcy, which is being considered in the Delaware state court, and the official liquidation process of FTX Digital. Both parties have agreed to work together as they share the same goal – to distribute the first part of the funds by the end of 2024. This way, creditors can present their demands to either of the organizations.
The document states, “All parties have a common goal – to make the first interim distribution by the end of 2024 to creditors with recognized demands and satisfactory KYC documentation.”
According to the provided data, creditors were given the opportunity to file claims on the FTX website starting from March 1, 2024. The deadline is set for May 15, allowing creditors to choose one of the two bankruptcy processes and file a lawsuit.
Based on the latest developments, this deadline can be extended at least until June 2024. All claims will be assessed as of November 11, 2022, when FTX filed for bankruptcy.
It should be noted that on March 28, 2024, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison. According to the court, investors lost $1.7 billion, creditors $1.3 billion, and clients around $8 billion.
However, the total amount of claims by US authorities to FTX ranges from $3 billion to $5 billion. In terms of payment priority, government bodies are ranked lower than the exchange’s creditors and the company Alameda Research, but higher than shareholders.
