The FTX repayment crisis is finally coming to an end as the exchange is set to make repayments worth $16 billion from February 18, 2025. The first phase is set to distribute payments anywhere between $6.5 billion to $7 billion and the payouts are based on the assets prices from November 2022.
Recovery Details and Distribution Plan
According to the FTX’s Creditor Recovery Summary, administrative claims, tax claims, and secured claims will be fully covered. The total creditor recoveries are estimated to be between 123% to 138%, Dotcom and the U.S. customers will see recoveries ranging from 126% to 140% and 123% to 131% respectively.
The exchange will allocate funds based on the claims that have been already defined. Dotcom customers hold the largest claims, valued at $7.995 billion while U.S. customer claims total $8.836 billion. Convenience class creditors will receive a fixed percentage, with additional funds from the asset recovery efforts.
Initial Payout and Future Distributions
The first phase of distribution is looking out for secured and priority claims. This will ensure that the immediate relief is provided to the affected creditors. The remaining funds will be released via multiple stages in the coming months, depending on the recovery of the stolen assets and liquidation of remaining holdings.
On the other hand, creditors have raised concerns over the use of November 2022 prices. The prices back then were extremely low and the prices right now have increased significantly since the bankruptcy. To this, the FTX restructuring team emphasizes that this approach will ensure fair and transparent distribution.
As the exchange is moving ahead with the repayment plan, the creditors will closely look for developments to make sure that the process is carried out as per the legal and financial commitments made.
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Source: https://www.cryptonewsz.com/ftx-repay-creditors-starting-feb-18/