The collapsed FTX exchange will pay out to victims this year

The bankrupt cryptocurrency exchange FTX has a realistic goal: to start paying out affected customers by the end of 2024. The official liquidators of FTX Digital have developed a plan to repay creditors. This is stated in the records of the meeting held in March in the Bahamas.

FTX customers lost $ 8 billion, investors lost another $ 1.7 billion, and creditors lost $ 1.3 billion. At least three FTX clients committed suicide. FTX’s bankruptcy consists of two separate processes that run in parallel:

• chapter 11 bankruptcy in Delaware, USA;
• liquidation of FTX Digital, a subsidiary of FTX based in the Bahamas.

Both processes were not coordinated with each other. However, the liquidators agreed and started acting for the «overall goal of making interim payments by the end of 2024». Initially, the funds will be returned to those creditors whose claims are recognized and satisfied by KYC documentation.

Starting March 1, the FTX claims portal has been open for submission of requests. Currently, the deadline for creditors to choose one of the two bankruptcy processes is May 15. According to documents from the liquidators' meeting, this deadline may be extended.

As a reminder, former FTX CEO Сем Бенкман-Фрід" href="https://noworries.news/biography/sem-benkman-frid/" data-bio-id="3697">Sam Bankman-Fried was sentenced to 25 years in prison. The former crypto billionaire was found guilty on all criminal charges brought by the prosecutor’s office, including fraud and embezzlement. The court hearing was held on March 28.