Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
FTX Bankruptcy Estate Aims to Make Claimants Whole by 2024 End

FTX Bankruptcy Estate Aims to Make Claimants Whole by 2024 End

DailyCoinDailyCoin2024/04/01 07:43
By:DailyCoin
  • FTX bankruptcy estate is looking to start repaying its customers soon. 
  • The exchange has instructed affectees to begin submitting claims. 
  • Despite the positive news, claimants are unhappy with the payout structure. 

It’s been nearly two years since the dramatic collapse of the now-defunct crypto exchange FTX, which left a $10 billion hole in the wallets of over nine million users. While claimants wait in limbo for reimbursement, a glimmer of hope emerges from the FTX bankruptcy estate as it signals confidence in eventually paying back its customers. 

FTX Bankruptcy Estate Aims for Full Payment by Year-End

The FTX bankruptcy estate aims to start repaying its customers by the end of the year, as revealed in discussions from a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas.

The estate is navigating through two parallel processes: the Chapter 11 bankruptcy filed in Delaware and the official liquidation process of FTX Digital, a Bahamas-based subsidiary of the exchange. Both wings of the estate have agreed to collaborate to ensure creditors can submit their claims to either entity and receive the full value they’re entitled to.

Sponsored

According to notes from the meeting , the Chapter 11 Debtors and the Joint Official Liquidators "have a shared goal to make the first interim distribution by the end of 2024 to creditors with admitted claims and satisfactory KYC documentation.” 

Creditors have been able to submit claims on the FTX’s claims portal since March 1, when the portal went live. Users have until May 15 to choose one of the two bankruptcy processes and submit a claim. However, the deadline is expected to be extended to at least June 2024, per the meeting. 

While FTX’s announcement comes as a milestone achievement, its approach remains hard to swallow for most creditors. 

FTX Users Unhappy With Chapter 11 Plan

In December 2023, the FTX Debtors’ Estate submitted a revised Chapter 11 plan outlining a proposal to repay victims based on the cash value of the digital assets held on the exchange at November 11, 2022 rates, the date of the bankruptcy.

Sponsored

However, FTX creditors have contested the proposal, arguing that it was unfair due to a significant rise in crypto prices since the bankruptcy date. Solana, representing over 34% of FTX’s holdings , has skyrocketed by over 1600% to $200 since November 2022. Meanwhile, Bitcoin, representing 15% of the exchange’s holdings, has surged to a new all-time high, recording a gain of over 370% to $73,000. 

Addressing user complaints, FTX attorney Andy Dietderich asserted that US bankruptcy was ‘very clear.’ He stated,

"I have no wiggle room on that. The Bankruptcy Code says what it says, and I am obligated to follow it."

On the Flipside

  • FTX has recently suspended efforts to facilitate the revival of the exchange following unsuccessful bidding attempts with potential buyers. 
  • Sam Bankman-Fried was recently charged with 25 years of prison for his role in the FTX fiasco.
  • FTX creditors alleged the exchange’s primary legal counsel actively participated in the fraud that affected the 9 million users. 

Why This Matters

FTX claimants have been patiently awaiting reimbursement for nearly two years. While the announcement of repayment is undoubtedly welcome news, it also creates a dilemma, given the relatively unfair payout structure.

Is the CFTC overstepping its boundaries in the KuCoin case?

CFTC’s KuCoin Case Threatens SEC’s Authority, Commissioner Pham

Bitcoin Whale sparks concerns of a sell-off:

Bitcoin Whale Awakens After 12 Years: Is a Sell-off Looming?

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

38% Dogecoin Rebound, Cardano Tests AI Limits, But Unstaked’s AI Advantage Steals the Show

Dogecoin (DOGE) jumps 38%, and Cardano (ADA) launches an AI testnet, but Unstaked’s advanced AI agents go beyond marketing, offering real impact and value.Dogecoin (DOGE) Future: Aiming for $3.94 with MomentumCardano (ADA) Blockchain Tests AI ScalabilityUnstaked: AI That Goes Beyond MarketingFinal Take: Real AI Utility vs. Hype

Coinomedia2025/05/08 21:11
38% Dogecoin Rebound, Cardano Tests AI Limits, But Unstaked’s AI Advantage Steals the Show

ETH Trades at Historic Lows vs BTC Since 2019

ETH hits lowest value compared to BTC since 2019, raising questions on a potential rebound amid mixed fundamentals.ETH Undervalued Against BTC: A Historical SetupBullish History, Bearish FundamentalsPatience Required for Ethereum Bulls

Coinomedia2025/05/08 21:11
ETH Trades at Historic Lows vs BTC Since 2019

Popcat Climbs, Dogecoin Stalls, But BTFD Triples Tokens with 200% Bonus—Best Meme Coin Presale to Buy Now Before May 26 DeadlineConclusion: Don’t Mis

BTFD Coin surges in Stage 15 with 90% APY staking and 200% bonus. Best meme coin presale to buy now before it launches on May 27!BTFD Coin (BTFD) – The Bulls Are Charging, Are You In?Dogecoin (DOGE) – The OG Meme King Facing Shaky GroundPopcat (POPCAT) – The Smart Money Magnet of the Moment

Coinomedia2025/05/08 21:11
Popcat Climbs, Dogecoin Stalls, But BTFD Triples Tokens with 200% Bonus—Best Meme Coin Presale to Buy Now Before May 26 DeadlineConclusion: Don’t Mis

SHIBA’s Hype Fades, ADA Devs Work; Meanwhile, Web3 ai Becomes Highest Trending Crypto With $500K Frenzy

Explore Shiba Inu (SHIBA) recovery trends, Cardano (ADA) prediction backed by developer growth, and how Web3 ai’s Portfolio Optimizer replaces guesswork with smart strategy. Learn why Web3 ai is gaining traction among the highest trending crypto tools.Web3 ai’s Portfolio Optimizer Turns Guesswork Into GainsShiba Inu (SHIBA) Recovery Sparks Renewed Interest After Key Price ReboundCardano (ADA) Prediction: Development Surge Fuels Bullish OutlookStrategy Over Speculation

Coinomedia2025/05/08 21:11
SHIBA’s Hype Fades, ADA Devs Work; Meanwhile, Web3 ai Becomes Highest Trending Crypto With $500K Frenzy