The FTX bankruptcy estate has announced a new timetable for refunds to creditors and former customers.
According to the statement, the repayment process is expected to be completed in January 2025 and the first payments are planned to be made in March 2025.
According to the announcement published on November 21, the FTX bankruptcy team will enter into an agreement with distribution agents to manage the payment process in December. These agents will coordinate the refund process by managing the customer payment portals. “We continue to work to maximize recoveries and aim to pay creditors as quickly as possible,” said John J. Ray III, FTX’s interim CEO.
What are the creditors' demands?
While FTX’s restructuring plan was approved by a U.S. judge in October, some creditors objected to the plan. In particular, some creditors were dissatisfied because the payment amounts were calculated at levels much lower than the price of digital assets as of the filing date. For example, the price of Bitcoin was around $16,000 at the time of filing.
The FTX bankruptcy estate has filed lawsuits against a number of crypto exchanges and individuals in an effort to recover more assets, including a lawsuit against KuCoin, which is seeking to recover $50 million that was allegedly locked up in the exchange after the FTX collapse, and another lawsuit filed in November 2024 against Crypto.com, which is seeking $11 million in restitution.
FTX has filed a $100 million lawsuit against Anthony Scaramucci and SkyBridge Capital over sponsorship and investment deals with former CEO Sam Bankman-Fried.
Binance and its founder Changpeng Zhao are also facing a $1.8 billion lawsuit from the FTX bankruptcy estate. Binance and Zhao allegedly made $1.76 billion worth of fraudulent transfers from the exchange before FTX crashed.
