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Crypto vs. Dollar

📌 FTX Bankruptcy Estate’s goal is to have all creditors in good standing by 2024.

The FTX Exchange intends to begin paying customers as soon as possible. Ftx

– The FTX Exchange intends to begin paying customers as soon as possible.

The exchange has instructed affected customers to start submitting their invoices.

Despite the positive news, claimants are unhappy with the payout regime.

It has been almost two years since the dramatic collapse of the now defunct cryptocurrency exchange FTX, which left a $10 billion hole in the wallets of more than 9 million users. While claimants wait for refunds, there are glimmers of hope as bankrupt FTX shows confidence that it will eventually pay back its customers.

Bankrupt FTX intends to start paying customers by the end of the year, discussions at a joint meeting of FTX Digital’s liquidators in the Bahamas showed.

The company is pursuing two parallel processes: a Chapter 11 bankruptcy filed in Delaware and the formal liquidation of FTX Digital, a Bahamas-based subsidiary of the exchange. The two processes are the bankruptcy proceeding filed in Delaware and the formal liquidation of FTX Digital’s Bahamian subsidiary, FTX Digital.

According to meeting minutes, the Chapter 11 debtor and co-liquidators “have a common goal of making a first interim distribution by the end of 2024 to creditors with eligible claims and satisfactory KYC documentation.”

Creditors can submit claims on the FTX claims portal starting March 1. Users have until May 15 to choose one of the two bankruptcy procedures and file their claims. However, the deadline is expected to be extended until at least June 2024.

While FTX’s application is a major accomplishment, most creditors are still reluctant to adopt its approach.

In December 2023, FTX’s debtors filed a Chapter 11 plan of amendment in which they outlined a proposal to compensate the affected parties for the cash value of digital assets held on the exchange based on the exchange rate as of November 11, 2022, the date of bankruptcy.

However, FTX creditors objected to the proposal as unfair due to the significant increase in cryptocurrency prices since the bankruptcy: solanium, which represents more than 34% of FTX’s assets, has risen in value by more than 1,600% since November 2022, reaching $200. At the same time, bitcoin, which accounts for 15% of the exchange’s assets, hit an all-time high, rising more than 370% to US$73,000.

In response to user complaints, FTX attorney Andy Dietderich said bankruptcy in the US is “very clear”. He said.

I have no say in the matter. It’s spelled out in the bankruptcy law and I have to follow it.”

FTX recently suspended its efforts to revive the exchange after a failed bid with a potential buyer.

Sam Bankman-Fried was recently indicted and faces 25 years in prison for his involvement in the FTX bankruptcy.

FTX creditors allege that the exchange’s general counsel was heavily involved in the scam that victimized 9 million users.

FTX creditors have been patiently waiting for compensation for nearly two years. While the payout announcement is certainly welcome news, it also poses a dilemma given the relatively unfair payout structure.

Bitcoin

Bitcoin

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BTC -0.75%

Ethereum

Ethereum

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ETH -1.17%

Binance Coin

Binance Coin

$560.91

BNB 0.48%

XRP

XRP

$0.52

XRP 4.12%

Dogecoin

Dogecoin

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DOGE 2.30%

Cardano

Cardano

$0.50

ADA 8.66%

Solana

Solana

$144.07

SOL 0.48%