FTX Begins $13B Repayment Nearly 3 Years After Collapse

FTX, a cryptocurrency speech founded by Sam Bankman-Fried, began repaying creditors connected February 18 astatine 10 a.m. Eastern Time, astir 3 years aft its failure.

A station from Sunil Kavara, a typical of the estate’s largest creditor group, reveals that the FTX volition statesman distributing payments to creditors this week for humble claims nether $50,000.

FTX volition statesman with tiny claims, Source: X

A U.S. bankruptcy justice approved FTX’s reorganization repayment program successful October 2024. The speech works with BitGo and Kraken to grip payouts, and creditors tin take to person funds done stablecoins.

In this archetypal round, FTX is paying retired $800 cardinal of the planned $1.2 billion. Overall, the institution expects to instrumentality astir $13 cardinal to creditors but is holding backmost immoderate funds for disputed claims.

Kavara indicated that $400 cardinal of the insignificant claims reimbursements volition spell to archetypal FTX customers, with the remainder going to assertion purchasers. This archetypal acceptable of payouts covers astir 162,000 claims retired of a full of 460,000 claimants, including users from the Bahamas.

Sam Bankman-Fried (SBF) launched FTX successful May 2019. It had go 1 of the large cryptocurrency exchanges, competing with Binance and Coinbase by 2021.

In precocious 2022, reports exposed problems successful FTX’s finances, causing the speech to illness and record for bankruptcy. SBF was arrested successful the Bahamas and aboriginal extradited to the U.S. He was sentenced to 25 years successful prison for fraud but has argued that his proceedings was unfair. His parents person reportedly looked into getting a pardon from Donald Trump.

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