FTX Customers Awaiting Payouts: What to Expect
08.09.2024 18:00 2 min. read Alexander Stefanov
The saga of the FTX cryptocurrency exchange, which once boasted a valuation of $32 billion, is nearing its conclusion. As both criminal and bankruptcy proceedings wrap up, former FTX users are eagerly awaiting the return of their funds.
Founder Sam Bankman-Fried is serving a 25-year prison sentence at the Brooklyn Metropolitan Correctional Facility following his conviction, while key figures like Caroline Ellison, Nishad Singh, and Gary Wang have admitted guilt on federal charges. Former CEO Ryan Salame may also face prison, with his case to be decided in an upcoming hearing.
In the bankruptcy realm, approximately $16 billion has been recovered, with a commitment to repay customers in full with interest. However, the refunds are being calculated based on a Bitcoin price of $16,871, significantly below current market values.
This has led to frustration among creditors, who argue that the plan does not meet expectations. John J. Ray III, the head of the liquidation team, clarified that the discrepancy stems from FTX holding only a fraction of the assets customers believed they had.
A key court hearing on October 7 will decide whether to approve FTX’s Chapter 11 Plan of Reorganization. If granted, the plan could facilitate refunds for over 98% of customers and unsecured creditors, based on the USD value of crypto assets as of November 11, 2022.
If the court approves, refunds may start by year-end following hearings on October 22, November 20, and December 12, which will address combining various claims for uniform processing. The claims submission period closed on September 29, 2023, with most claims under $50,000 expected to receive approximately 118% of their USD value based on the November 2022 crypto prices.
Should the plan be approved, FTX victims might finally see their long-awaited repayments by the end of this year.
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As the year ends, developments are emerging from the fallout of the FTX collapse, which was previously led by Sam Bankman-Fried.
The slow dismantling of Sam Bankman-Fried’s crypto empire continues, with defunct firms FTX and Alameda Research quietly shifting another $10.3 million in Solana (SOL) as part of their asset liquidation plan.
Months after acquiring the collapsed FTX EU platform, crypto startup Backpack has taken a major step toward restoring funds to affected European customers.
FTX creditors in the Eurozone will receive repayments in euros based on 2022 closure prices, plus processing fees of up to 30%.
The FTX bankruptcy team is pursuing more than $100 million from SkyBridge Capital and its founder Anthony Scaramucci, aiming to reclaim funds linked to deals struck between Scaramucci’s firm and former FTX CEO Sam Bankman-Fried before FTX’s collapse.
Ryan Salame, the former co-CEO of FTX Digital Markets, has requested a 45-day extension on his prison reporting date due to needing medical treatment following a severe dog bite.
The long-awaited creditor repayments from bankrupt crypto exchange FTX have hit a major roadblock, with the FTX Recovery Trust announcing a temporary suspension of payments to users in 49 foreign jurisdictions.
FTX, a defunct crypto exchange, has reached a preliminary agreement to settle with the US Commodity Futures Trading Commission (CFTC), marking a significant step in its bankruptcy proceedings since its abrupt collapse in 2022.
Following an extensive review of the reorganization strategy, the troubled cryptocurrency exchange FTX has announced plans to allocate $6 billion to affected users, specifically targeting those impacted by its 2022 collapse.
The bankrupt cryptocurrency exchange FTX has initiated legal proceedings to reclaim over $50 million in assets that it alleges were wrongfully taken by KuCoin, as stated in court documents from October 28.
FTX’s liquidators have filed a strong objection to a multi-billion-dollar claim by failed hedge fund Three Arrows Capital (3AC), arguing the request is based on exaggerated and misleading figures.
FTX’s legal team has moved to dismiss a $1.53 billion claim filed by Three Arrows Capital (3AC), calling it an exaggerated and baseless attempt to recover losses from risky trading.
FTX’s bankruptcy estate is preparing to unlock a significant portion of its remaining Solana (SOL) holdings, releasing 11.2 million tokens valued at approximately $1.57 billion.
FTX’s bankruptcy case continues to unfold with significant developments, as recent filings reveal the recovery of millions in political donations made by the exchange.
FTX and its affiliates have moved closer to finalizing their reorganization plan, which has received substantial backing from creditors.
FTX is gearing up to implement its restructuring plan, with the effective date anticipated for early January 2025.
FTX has filed a motion to settle with Caroline Ellison, the former Alameda Research CEO, requiring her to relinquish nearly all her assets.
FTX is set to begin distributing $16 billion in assets to creditors starting in early Q4 2024.
FTX Trading Ltd. and the FTX Recovery Trust have announced August 15, 2025 as the official record date for their next round of distributions.
FTX, the collapsed crypto exchange, has agreed to pay Emergent Technologies $14 million to resolve a dispute involving over $600 million worth of Robinhood shares.