Users impacted by FTX’s 2022 collapse will begin receiving bankruptcy distributions starting January 3, 2025, with the option to choose payouts in stablecoins through Kraken and BitGo.
The FTX estate confirmed that the distribution plan, which received court approval from U.S. District Judge John Dorsey in October, will become effective on that date. Sunil Kavuri, spokesperson for FTX’s largest creditor group, identified Kraken and BitGo as the chosen platforms due to their payment capabilities, with affected users given the choice to receive repayments in stablecoins.
Judge Dorsey’s ruling in Delaware granted approval for the plan, which allows 98% of creditors to recover 118% of their claim value. However, FTX’s decision to issue repayments in cash drew criticism from Kavuri and other bankruptcy claimants. Despite the objections, court documents revealed that 94% of creditors, holding nearly $7 billion in claims, voted in favor of the plan.
FTX’s bankruptcy administrator, John J. Ray III, praised his interim team for recovering approximately $16 billion in assets and cash for creditors. Ray, who took over as CEO in late 2022, following Sam Bankman-Fried’s departure, has overseen efforts to salvage the collapsed crypto exchange and its subsidiaries, including Alameda Research.
Bankman-Fried, once the face of FTX, was convicted of fraud in November 2023 and sentenced to 25 years in prison. Under Ray’s leadership, FTX continues to work toward unwinding the remnants of Bankman-Fried’s crypto empire.
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