FTX’s bankruptcy estate is set to release $ 1.6 billion funds for creditors at the end of the month, marking the third major payment after Crypto Exchange’s implosion almost three years ago.
The FTX Recovery Trust, which oversees the bankruptcy process, announced on Friday that payments begin on September 30 for creditors who have completed the verification steps on the FTX collar portal. Funds will be directed through service providers Bitgo, Kraken or Payoneer and are expected to land on accounts within three working days.
US customer needs will receive 40% in the latest round, bringing their total recovery so far to 95%, the press release said. “Dotcom” customers, users of Exchange’s international arm, will see another 6% payout for 78% in cumulative distributions. General unsecured and digital asset loan requirements are set for a 24% payment and raise recovery to 85%. Convenience requirements are paid out to 120%, which exceeds the face value of what is due to.
The September distribution follows earlier rounds that have returned over $ 6 billion to creditors, part of a process aimed at recovering assets for users of the once prominent crypto exchange that collapsed in November 2022 and pushed the crypto industry into a deep bear market. Sam Bankman-Fred, founder and CEO of the exchange, is currently being a 25-year-old verdict after he was convicted of seven counts of fraud and conspiracy.
