Gary

Read

Reserve

FTX is nearing completion of its court-approved repayment plan, two years after the exchange’s collapse due to corporate mismanagement and fraud.
A Nov. 21 press statement <a href="https://www.prnewswire.com/news-releases/ftx-provides-update-on-upcoming-timeline-for-creditor-and-customer-distributions-302313274.html?tc=eml_cleartime" target="_blank" rel="noopener noreferrer nofollow">revealed</a> that the FTX estate plans to start distributing approximately $16 billion to creditors by March 2025. The Chapter 11 reorganization is expected to take effect in January, with initial payments beginning 60 days later
Next month, claimants will finalize arrangements with specialized distribution agents, and the bankruptcy court will issue an order on the “Disputed Claims Reserve Amount” in December.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 We are pleased to announce that we will begin distributing proceeds in early 2025. The timeline laid out reflects the experience and continued work of the team of professionals supporting the Debtors, who already have recovered billions of dollars on behalf of FTX’s creditors and customers.
 John J. Ray III, FTX CEO and chief restructuring officer&nbsp;
</blockquote>
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/ftxs-gary-wang-spared-prison-time-in-fraud-case/"> FTX’s Gary Wang spared prison time in fraud case </a>
Ray III stepped in as CEO after founder Sam Bankman-Fried filed for Chapter 11 protection in late 2022. Despite his long tenure as a bankruptcy administrator, Ray III criticized the startling mismanagement throughout Bankman-Fried’s companies.
Months of recovery efforts and lawsuits eventually recouped around $16 billion in cash and cryptocurrencies for the FTX estate. Creditors and investors of the defunct exchange are expected to receive most, if not all, of their assets.
Meanwhile, FTX’s founder was found guilty of fraud, although he denied any criminal intentions. Bankman-Fried was sentenced to 25 years in prison and plans to appeal the verdict, citing judicial bias.
Members of the inner circle received lighter sentences or no jail time as rewards for testifying against SBF. His former co-founder Gary Wang <a href="https://crypto.news/ftxs-gary-wang-spared-prison-time-in-fraud-case/" target="_blank" rel="noopener noreferrer nofollow">walked</a> away with two years of supervised release. Ex-Alameda co-CEO Caroline Ellison began <a href="https://crypto.news/caroline-ellison-reports-to-federal-prison-to-start-sentence/" target="_blank" rel="noopener noreferrer nofollow">serving</a> a two-year sentence on Nov. 7. Disgraced executives <a href="https://crypto.news/alamedas-trabucco-forfeits-yacht-70m-in-claims-to-ftx-estate/" target="_blank" rel="noopener noreferrer nofollow">forfeited</a> all gains and assets they received during their time under Bankman-Fried.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/solana-etf-talks-progressing-at-sec-report/"> Solana ETF talks “progressing” at SEC: report </a>

FTX to begin creditor repayments by March 2025

crypto.news

Other articles published on Nov 21, 2024

Mad Price Prediction: MAD Surges 70% As Layer-2 Crypto Pepe Unchained Offers Last Chance To Buy B...

New Secure Chatting Application Wibegram Launching Soon

Injective Unveils iAgent SDK to Automate Blockchain Tasks with AI

20% Crypto Tax Rate Boosts Digital Assets, Here’s How You Can Get the Benefits

$800 in Solana vs $800 in PropiChain: $800,000 Within Reach for Investors Holding this RWA Altcoin

FTX Sues Binance and CEO Changpeng Zhao for $1.8B Over Alleged Fraud

Join our free newsletter for daily crypto updates!