FTX to begin creditor repayments by March 2025
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A Nov. 21 press statement revealed that the FTX estate plans to start distributing approximately $16 billion to creditors by March 2025. The Chapter 11 reorganization is expected to take effect in January, with initial payments beginning 60 days later
Next month, claimants will finalize arrangements with specialized distribution agents, and the bankruptcy court will issue an order on the “Disputed Claims Reserve Amount” in December.
We are pleased to announce that we will begin distributing proceeds in early 2025. The timeline laid out reflects the experience and continued work of the team of professionals supporting the Debtors, who already have recovered billions of dollars on behalf of FTX’s creditors and customers.
John J. Ray III, FTX CEO and chief restructuring officer
Months of recovery efforts and lawsuits eventually recouped around $16 billion in cash and cryptocurrencies for the FTX estate. Creditors and investors of the defunct exchange are expected to receive most, if not all, of their assets.
Meanwhile, FTX’s founder was found guilty of fraud, although he denied any criminal intentions. Bankman-Fried was sentenced to 25 years in prison and plans to appeal the verdict, citing judicial bias.