{"id":22664,"date":"2024-11-22T10:03:45","date_gmt":"2024-11-22T10:03:45","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=22664"},"modified":"2024-11-22T10:03:45","modified_gmt":"2024-11-22T10:03:45","slug":"ftx-to-finalize-bankruptcy-claims-by-january-2025-with-payouts-starting-march","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=22664","title":{"rendered":"FTX To Finalize Bankruptcy Claims By January 2025, With Payouts Starting March"},"content":{"rendered":"

The FTX bankruptcy estate has announced an updated timeline for creditor and former customer reimbursements, aiming to finalize claims by January 2025.<\/span><\/p>\n

Initial payouts <\/span>are expected<\/span> to begin in March 2025, according to a 21 <\/span>November 2024 <\/span>statement from the defunct crypto exchange<\/span><\/a>.<\/span><\/p>\n

To streamline the process, FTX plans to collaborate with distribution agents starting in December 2024. These agents will manage the payout system and oversee the customer reimbursement portal. <\/span><\/p>\n

EXPLORE:\u00a0<\/span>20 Next Cryptocurrencies to Explode in 2024<\/span><\/a><\/strong><\/p>\n

FTX CEO Vows To Return Funds Swiftly<\/span><\/h2>\n

Interim CEO John J Ray III expressed the <\/span>estate\u2019s<\/span> commitment to returning funds swiftly. <\/span><\/p>\n

\u201cW<\/span>hile we continue to take actions to maximize recoveries, we are full steam ahead to reach arrangements with our distribution agents and return proceeds to creditors and customers as quickly as possible,<\/span>\u201d <\/span>Ray said.<\/span><\/p>\n

Although the reorganization plan received court approval in October, it faced opposition from some creditors. A group led by Sunil Kavuri criticized the plan. He argued that <\/span>reimbursement amounts were calculated<\/span> based on the petition <\/span>date,<\/span> when cryptocurrency prices were significantly lower. <\/span><\/p>\n

For example, Bitcoin was trading at around $16,000 at the time, compared to its current value. <\/span><\/p>\n

#FTX<\/a> to start Creditor Payment!<\/p>\n

Two years after the implosion the blockchain, FTX says it\u2019s ready to start shelling out $16.5B to jilted users. <\/p>\n

But here\u2019s the kicker: payouts are locked to Nov. \u201822 crypto prices \u2013 Bitcoin at $20K, ETH at $1.2K \u2013 leaving users wrecked. pic.twitter.com\/s7ZVdq9RB8<\/a><\/p>\n

\u2014 MemeWhale (@meme__whale) November 22, 2024<\/a><\/p>\n\n

In its quest to recover assets,<\/span> the FTX estate has pursued legal action against various parties.<\/span> Notably,<\/span> a lawsuit was filed<\/span> against KuCoin to recover $50 million in assets allegedly locked on the exchange since <\/span>FTX\u2019s<\/span> collapse in 2022.<\/span><\/p>\n

Similarly, in November 2024, the estate filed a complaint against Crypto.com to reclaim $11 million in funds.<\/span><\/p>\n

High-profile individuals and companies have also <\/span>been targeted<\/span>. On 8 <\/span>November 2024<\/span>, FTX initiated legal proceedings against Anthony Scaramucci and his firm, SkyBridge Capital. It is seeking to recover $100 million spent on sponsorships and investments involving former CEO Sam Bankman-Fried. <\/span><\/p>\n

Binance and its founder, Changpeng Zhao, are facing a $1.8 billion lawsuit. This is over allegations of receiving $1.76 billion in fraudulent transfers <\/span>prior to<\/span> FTX\u2019s<\/span> downfall.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>Best New Cryptocurrencies to Invest in 2024<\/span><\/a><\/strong><\/p>\n

FTX Settles Lawsuit With Bybit, Securing $228M<\/span><\/h2>\n

In October, the FTX bankruptcy estate <\/span>reached a $228 million settlement<\/span><\/a> with <\/span>cryptocurrency<\/span> exchange Bybit to recover funds for repaying former FTX customers and creditors.<\/span><\/p>\n

Under the\u00a0<\/span>terms of the settlement<\/span>, FTX will retrieve $175 million in digital assets held by Bybit, along with an additional $53 million in BIT tokens, which\u00a0<\/span>will be sold<\/span>\u00a0to Mirana Corp,\u00a0<\/span>Bybit\u2019s<\/span>\u00a0investment arm.<\/span><\/p>\n

FTX\u00a0<\/span>originally<\/span>\u00a0launched a $1 billion lawsuit against Bybit and Mirana in late 2023, alleging that these entities used special privileges and<\/span>\u00a0\u201c<\/span>VIP<\/span>\u201d\u00a0<\/span>access to preemptively withdraw $327 million in digital assets and cash in the days leading up to\u00a0<\/span>FTX\u2019s<\/span>\u00a0downfall.<\/span><\/p>\n

Attorneys for\u00a0<\/span>FTX\u2019s<\/span>\u00a0estate argued that Bybit and Mirana received priority withdrawal access from FTX executives, potentially influencing the\u00a0<\/span>estate\u2019s<\/span>\u00a0financial losses during its collapse.<\/span><\/p>\n

The approval of\u00a0<\/span>FTX\u2019s<\/span>\u00a0reorganization plan earlier in October by Judge John Dorsey\u00a0<\/span>provided a boost to<\/span>\u00a0these recovery efforts.<\/span><\/p>\n

Additionally, FTX investors recently dismissed their lawsuit against Sullivan & Cromwell, the law firm <\/span>that represented<\/span> the cryptocurrency exchange, after accusing it of complicity in the\u00a0<\/span>exchange\u2019s<\/span>\u00a0alleged fraudulent activities.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>FTX Settles Lawsuit with Bybit, Securing $228M to Aid Creditor Repayments<\/span><\/a><\/strong><\/p>\n

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.<\/span><\/em><\/p>\n

The post FTX To Finalize Bankruptcy Claims By January 2025, With Payouts Starting March<\/a> appeared first on <\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The FTX bankruptcy estate has announced an updated timeline for creditor and former customer reimbursements, aiming to finalize claims by January 2025. Initial payouts are expected to begin in March 2025, according to a 21 November 2024 statement from the defunct crypto exchange. To streamline the process, FTX plans to collaborate with distribution agents starting […]<\/p>\n","protected":false},"author":0,"featured_media":22665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-22664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/22664"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22664"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/22664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/22665"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}