How, When, and How Much Money Will FTX Distribute?
Sunil, an activist creditor of #FTX ha, shared an update on the timeline and estimated amounts of refunds.
Sunil denies the information that was circulating about the start of fund distribution beginning January 3 and about the distribution of 16 billion dollars over 60 days, specifically accusing aixbt of spreading false information about FTX.
Estimate of Available Funds
FTX Cash: It is estimated that FTX currently has around 13 billion dollars in cash, a figure that could increase to 14 billion dollars by March.
Asset Sales and Lawsuits: It is expected to recover between 5 and 7 billion dollars additionally from asset sales and potential lawsuits.
Reserve for Litigation: Around 7 billion dollars has been reserved to cover potential litigation. These funds will not be distributed initially.
First Major Payment: It is estimated that by March 25, a distribution of around 7 billion dollars will be made. Subsequent distributions will depend on asset recovery and the outcomes of the lawsuits.
Time Horizon: Recovery of the remaining funds could extend between 2 and 3 years.
Implications for Creditors
Delays: Refunds are taking longer than initially expected.
Uncertainty: The final amount that creditors will receive will depend on various factors, such as success in asset sales, lawsuit outcomes, and legal costs.
Gradual Process: Refunds will be made gradually, and a complete recovery is not expected in the short term.