- FTX will pay the main creditors on May 30 using $ 11.4 billion in cash.
- The payment depends on the values of assets in November 2022, not the current prices.
FTX will start paying its main creditors on May 30, which represents a major step in the lengthy bankruptcy process. The collapsed encryption exchange raised $ 11.4 billion in cash for payment. However, payments will follow reviews from the date of bankruptcy on November 11, 2022, creating a flagrant contradiction with the prices of current assets.
Bitcoin, which is now five times the value of 2022, highlights the problem. Other symbols such as Solana and XRP increased by 650 % and 450 %, respectively. Ethereum also acquired 47 %. Despite the FTX estimates of 118 % for each claim, many creditors feel short due to this old evaluation method.
Andrew Daidrich, FTX’s bankruptcy lawyer, emphasized the challenge of sorting through claims. He pointed out that the company faces the claims of “27 Quintillion”, many of which are fraudulent or duplicate. Bloomberg I mentioned FTX gives priority to legal creditors while liquidating unbelievable claims.
The smaller creditors, who keep claims less than $ 50,000, are already receiving payment. However, the main creditors, including investors and institutional companies, will have to wait. The payment process may take months due to the high volume of claims and the need to verify legitimacy.
Constant frustration of the creditor
The creditors will get a 9 % annual interest rate on their claims while waiting for the payment. This creates pressure for FTX to accelerate the process, as the accumulated interest increases the total payment. Meanwhile, FTX cash reserves are generated less returns, adding to financial concerns.
Banking, foot In November 2022, thousands of creditors left unbelievable their recovery. Many expected payment in coding instead of cash. With the high price of bitcoin four times, frustration has grown between the demands.
FTX obtained the court’s approval of the payment plan in October 2023. However, the complications of claiming claims were delayed. The next payment will bring some closure, although many creditors are still not satisfied.
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