After nearly three years of legal procedures after bankruptcy in November 2022, FTX will start paying creditors on February 18, 2025. The creditors with claims worth $ 50,000 or less – are classified as a “comfort category” – they will get full payment in addition to 9 % Of annual attention from 9 % from November 11, 2022.
The official candidates for FTX Digital Markets Ltd. confirmed. The qualified creditors will receive distributions within three working days. Payments will be processed through BITGO, which is a digital asset custody provider, and the recipient must confirm the details of the account via the FTX digital claim. To ensure transparency in the distribution process, the official record of accounts will be followed.
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FTX Fallout
Once the encrypted currency exchange, FTX collapsed in November 2022 due to the acute liquidity crisis. Investigations revealed that Alaeda Research, a commercial company closely linked to exchange, has misused customer money to cover losses. This sparked an increase in the withdrawal that the stock market was unable to fulfill, forcing it to bankrupt.
Former CEO Sam Bankan Al -Muqali resigned, later convicted of fraud and conspiracy, and obtained a 25 -year prison sentence. Other former executives, including Caroline Ellison and Gary Wang, faced legal consequences. The collapse sent shock waves through the encryption industry, which led to an increase in organizational scrutiny.
While smaller creditors will be paid first, the largest claims remain suspended. The new administration of FTX, led by CEO John Ji Ray III, is continuing asset recovery efforts, including lawsuits against former executives and third parties. Additional creditors will be announced as procedures.
The next payment is expected to provide relief that is needed for creditors and move the stock market closer to settling its obligations, however, it is not known whether there are sufficient money for the total payment and how the senior creditors will continue with the continuing procedures.
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