FTX, the exchange of cryptocurrency collapsed once led by Sam Bankman Fried, plans to start paying his main creditors at the end of May, Bloomberg reported on the basis of Delaware’s legal proceedings this week.
The company collected $ 11.4 billion in cash to distribute thousands of parties affected by its bankruptcy in 2022, the first payments to major creditors set for May 30.
These include institutional investors and companies that held Crypto on the FTX platform. Small creditors with complaints below the $ 50,000 mark have already started to receive distributions.
The collapse of the FTX has left a financial crater and a trace of frustrated creditors – many of which should be reimbursed in crypto, not in dollars. Since bankruptcy, the price of Bitcoin has more than quadrupled, intensifying the frustrations among those who await their assets.
The task of relaxing the FTX’s assessment has been slowed down by a large number of complaints, many of which would have questionable. Andrew Dietderich, a lawyer for the company’s bankruptcy, told court that the FTX had received “27 Quintillion,” reported Blloomberg, many of whom are duplicates or fraudulent.
Interest payments aggravate the urgency. While FTX gains only a modest yield of its species, legitimate creditors are entitled to 9% interest each year on unpaid complaints. The more time it takes to pay, the more the company could have to.
Find out more: almost all FTX creditors will receive 118% of their funds in cash, says the succession in a new plan
