Collapsed Crypto Exchange FTX Begins Repaying Billions to Customers
The FTX estate began a creditor repayment program that could total more than $16 billion, releasing $1.2 billion to smaller claim holders on Tuesday. It’s the latest step in the collapsed crypto exchange’s efforts to help former customers recoup funds
The FTX estate began a creditor repayment program that could total more than $16 billion, releasing $1.2 billion to smaller claim holders on Tuesday. It’s the latest step in the collapsed crypto exchange’s efforts to help former customers recoup funds.
The bankruptcy estate's initial distribution targeted "Convenience Class" claims under $50,000, reaching the majority of affected users. The estate's managers will be sending payments in stages to ensure proper verification and orderly distribution, according to FTX.
"The start of these distributions is an incredible and important milestone for FTX,” John J. Ray III, plan administrator of the FTX Recovery Trust, said in a statement.
In October, FTX’s bankruptcy estate announced that creditors and customers would likely receive between $14.5 billion to $16.3 billion in total compensation. Several hundred thousand investors who had money on the exchange filed claims in the aftermath of its chapter 11 bankruptcy protection filing.
