FTX Creditors Begin Receiving Payouts
Creditors of the now-defunct cryptocurrency exchange FTX who have claims amounting to less than $50,000 have commenced receiving their payouts. These distributions include an impressive 9% annual interest that has been accruing since November 2022. Reports from multiple users on the FTX subreddit indicate that funds are being credited to their accounts at the crypto exchange Kraken, along with the added interest, which is a welcome development for many affected by the collapse.
According to the bankruptcy plan, creditors can expect to receive approximately 119% of their adjudicated claim value, which is a significant recovery considering the circumstances surrounding FTX’s downfall. Additionally, Arkham Intelligence has highlighted FTX’s wallet outflows as further evidence of these payments, estimating that the total payouts could amount to around $1.2 billion.
For those creditors whose claims exceed the $50,000 threshold, payments are anticipated to begin in the second quarter. In total, about $16 billion is set to be distributed among creditors. The funds are being disbursed in U.S. dollars through the platforms of both BitGo and Kraken. Screenshots shared on Reddit reveal that Kraken has also provided users with trading-fee credits as part of the payout process. This strategy appears to be a means for Kraken to facilitate the distributions while avoiding profiting from the situation, thereby demonstrating a commitment to supporting those affected by FTX’s financial turmoil.
