FTX Refund Update
The bankrupt cryptocurrency exchange FTX is in the process of refunding its creditors. According to recent updates, FTX has recovered a significant amount of assets to repay customers.[1]
Refund Amount and Distribution
FTX has announced that it will distribute between $14.7 billion and $16.5 billion to customers, which is approximately 118% of the value investors had in their accounts at the time of FTX's bankruptcy in November 2022.[2] The refund plan has been approved by a US court, and payments are expected to be made in fiat currency, not cryptocurrencies.[2]
Refund Timeline
The refund process is expected to begin with minor creditors, who are owed less than $50,000, and will likely be completed by the end of 2024.[2] Larger institutional creditors will receive their refunds in staggered installments.[2] The exact timeline for these refunds has not been disclosed.
Lawsuits and Asset Recovery
FTX has filed lawsuits against two companies, NFT Stars Limited and Kurosemi Inc., for allegedly failing to return digital assets as part of its recovery program.[3] The lawsuits claim that these companies owe FTX significant amounts of tokens, which were purchased through Simple Agreements for Future Tokens (SAFTs) by Alameda Research, FTX's affiliated trading firm.[3]
Global Settlement Agreement
FTX Digital, the main regulated entity of the FTX International Platform, has agreed to a Global Settlement Agreement (GSA) with the US Chapter 11 Debtors, which allows for the pooling of assets from both estates to enable FTX.com customers to receive the same recoveries.[4] The GSA also enables customers to lodge a claim in either the Bahamas Process or the US Process.[4]
Projected Returns
The projected returns for FTX customers are estimated to be in the range of 119% to 143% of claims.[4] This is a significant development in the FTX bankruptcy case, and customers are expected to receive substantial refunds.
The #FTXRefunds update today is that FTX is making progress in refunding its creditors, with a significant amount of assets recovered and a refund plan in place. The refund process is expected to be completed in the coming months, with minor creditors being paid first.
