Finally, after two years of litigation and capital recovery processes, the international cryptocurrency exchange that fell into insolvency and declared bankruptcy in 2022, FTX, will begin to make the corresponding payments to compensate the affected people, so expects a distribution of USD $16 billion.
According to several reports published today, the distribution of the funds will formally begin today, and will extend for the next 60 days, in accordance with the provisions of the bankruptcy agreement approved by the competent court.
As indicated by the exchange in the reports submitted to the court, it is estimated that the total distribution will range between USD $14.7 billion and USD $16.5 billion, starting first with those affected whose claims are USD $50,000 or less.
As indicated by the new FTX administration, after the recovery of funds within the framework of the bankruptcy process, creditors and affected parties are expected to receive the equivalent of 119% of the claim amount, which includes the requested capital plus interest. corresponding. This surplus, which will be allocated to those who saw their capital retained, will be financed with approximately USD $1.2 billion of the total raised.
Let us keep in mind that, weeks ago, FTX reported that the compensation process for a good part of those affected will be channeled through the BitGo and Kraken platforms, which will make the initial distributions intended for retail and institutional users in the jurisdictions that have proper support.
People who are going to access their compensation must complete the due KYC verification process in the debtor portal enabled by FTX, and select between BitGo and Kraken to choose where the respective payment will be channeled.
As we indicated in a previous edition, possibly after the distribution of the respective funds is completed, the FTX chapter, one of the most impactful in recent years in the cryptocurrency ecosystem, may be officially closed.
Let us keep in mind that although a possible relaunch of the brand was on the table, in the end the board scrapped these plans after not finding an investor who could inject the capital necessary to reopen the exchange. Therefore, the company is expected to honor the due bankruptcy process and officially close its doors.
Let us remember that the cryptocurrency exchange, which once dominated the industry, collapsed at the end of 2022, after a complex plot of embezzlement perpetrated with client funds was revealed. This led FTX to declare bankruptcy and its main executives to be arrested by the US authorities.
Currently, the founder and former CEO of the platform, Sam Bankman-Fried, is serving a 25-year prison sentence, although he hopes to reopen the case and appeal his sentence seeking a new trial.
For her part, Caroline Ellison is serving a two-year prison sentence in a minimum security facility in the US, despite collaborating with authorities to clarify the facts related to the collapse of the exchange. However, recent reports suggest that his sentence was reduced by a few months, thanks to his support in the respective investigations.
For their part, Gary Wang and Nishad Singh were acquitted of the charges against them, given that their participation in the plot was quite small compared to that of Bankman-Fried and Ellison.
Source: Angel Di Matteo / DiarioBitcoin.
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