FTX to Pay Over $5B to Creditors as Bankrupt Estate Gears Up for Distribution
FTX creditors are about to hit the jackpot, folks! They’ll start receiving over $5 billion in distributions starting May 30 as part of the exchange’s grand recovery plan. It’s like winning the lottery, but with a little less excitement.
Who’s Getting Paid and How Much?
Well, the lucky creditors can expect to get back between 54% to 120% of their original claims. The amounts are based on the value of their holdings back when FTX went belly up in November 2022. BitGo and Kraken will be the ones handling the distribution, making sure the funds reach the right pockets within one to three business days from the magical date of May 30.
The Breakdown
It’s not just a free-for-all cash grab, though. The payouts are divided into four classes of creditors. The Alameda Research counterparties, lenders, and trading vendors fall into “Class 5” and will be receiving between 54% to 72% of their claims. Small, unsecured claimants are looking at around a 61% recovery rate. And those intercompany claims? Well, they’re hitting the jackpot at 120%. Over 90% of all claims are already in the pipeline, ready to make some lucky folks very happy.
In Conclusion
Shaurya Malwa, the Co-Leader of the CoinDesk tokens and data team in Asia, is keeping an eye on the situation. He holds an impressive portfolio of crypto assets, totaling over $1,000. Maybe he’s onto something, or maybe he just likes to live life on the edge. Who knows? But one thing’s for sure – FTX creditors are in for a treat come May 30. It’s like Christmas in May for them, thanks to the hard work of BitGo, Kraken, and the FTX Recovery Trust. So, get ready to pop the champagne and celebrate because the money is about to start flowing!
