FTX has solidified a plan to distribute $1.9 billion to creditors of the collapsed cryptocurrency exchange, with the payout scheduled for September 30. This significant distribution will specifically exclude claims under dispute and creditors residing in restricted jurisdictions.
This distribution plan utilizes cash reserves freed after a Bankruptcy Court ruling significantly reduced the total disputed claims against the exchange from an initial $6.5 billion down to $4.3 billion. The decision to exclude disputed claims aims to streamline the payout process for holders of allowed claims.
Creditors located in geographically restricted areas, notably including China, will be barred from receiving payments as part of this distribution event. Sunil Kavuri, a prominent FTX creditor, recently highlighted the critical importance of upholding the integrity of the distribution process.
The path to this finalized plan saw the Bankruptcy Court address over ninety objections raised by parties involved in the proceedings. This culminated in a hearing where the court granted additional time specifically to allow for the resolution of jurisdictional claim issues.
While this $1.9 billion distribution marks tangible progress in repaying FTX creditors and recovering assets, it also underscores the persistent complexities surrounding the handling of disputed claims and regulatory restrictions across different jurisdictions.