The FTX Recovery Trust is gearing up for its third distribution to creditors affected by the exchange’s significant collapse, with payments set to commence on September 30, 2025. FTX Trust Confirms Payments To Eligible Creditors According to the official statement, this distribution will be available to holders of allowed claims categorized under the Plan’s Convenience and Non-Convenience Classes who have completed the necessary pre-distribution requirements. Eligible creditors can expect to receive their funds through their chosen distribution service provider—either Bitgo, Kraken, or Payoneer—within one to three business days following the distribution date. Related Reading: Bitcoin Price Forecast: Expert Predicts 70% Chance Of New Highs Within Two Weeks In this upcoming distribution, the Recovery Trust will adhere to the waterfall priorities outlined in the Plan. Specifically, Allowed Class 5A Dotcom Customer Entitlement Claims will receive an additional 6%, bringing their cumulative distribution to 78%. Meanwhile, Allowed Class 5B U.S. Customer Entitlement Claims will see a substantial 40% distribution, elevating their cumulative total to 95%. Additionally, Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims are each set to receive a 24% distribution, which raises their cumulative distributions to 85%. Interestingly, Allowed Class 7 Convenience Claims will benefit from a major 120% distribution. FTT Token Soars 22% The native token of the failed exchange, FTT, has experienced notable growth . According to data from CoinGecko, FTT’s price has surged by 22% over the past seven days. Related Reading: Warren Calls Out US DOJ Over Binance Settlement And Alleged Trump Ties In New Letter The token reached a peak of $1.13 on September 18 before experiencing a slight retracement. Over the week, FTT has fluctuated between $0.78 and $1.06. Despite this recent rally, it’s important to note that FTT’s all-time high of $84.18, achieved in September 2021, remains nearly 99% above its current price levels. Featured image from DALL-E, chart from TradingView.com
Digital asset claims were valued at FTX's petition date, though many cryptocurrencies have grown significantly in value in the 27 months since.
The ownership of FTX EU has become a point of contention between Backpack Exchange and the FTX estate.
In a move to bolster its presence in the European market, Backpack Exchange, a crypto trading platform established by former employees of Sam Bankman-Fried’s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million. As earlier reported by Bloomberg, this acquisition aims to expand Backpack’s derivatives offerings in […]
Rumors are swirling through the cryptocurrency community regarding the commencement of FTX’s long-awaited $16 billion repayment plan to creditors, a move that has garnered both excitement and skepticism. As the defunct exchange, once led by the now-convicted Sam Bankman-Fried, prepares to initiate these payments, key industry players are expressing optimism about the potential positive impact […]
After years of uncertainty, the defunct cryptocurrency exchange FTX, previously led by convicted founder Sam Bankman-Fried, has announced the effective date for its Chapter 11 reorganization plan aimed at distributing funds to affected customers. Initial Distribution Date Set On Monday, FTX Trading Ltd. and its affiliated debtors revealed that their court-approved Chapter 11 Plan of […]
As the cryptocurrency exchange FTX, once run by convicted founder Sam Bankman-Fried, continues its bankruptcy proceedings, significant developments have emerged regarding the recovery of funds for affected users. A recent court filing reveals that debtors in the case have successfully recovered millions of dollars in political donations made by Bankman-Fried and his associates. How FTX […]
The long-awaited resolution for nearly $16 billion in funds owed to users and customers of the defunct crypto exchange FTX is approaching, as the estate managing the recovery process has outlined the next steps and timeline for distribution. FTX Nears Completion Of Chapter 11 Plan In Thursday’s announcement, FTX confirmed that it is nearing the completion of the final prerequisites necessary for its Court-approved Chapter 11 Plan of Reorganization to take effect, marking a significant milestone toward initiating creditor and customer distributions. John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, expressed optimism about the upcoming distributions, saying that they will begin distributing proceeds in “early 2025”. Ray emphasized that the timeline reflects the diligent efforts of the team working on behalf of FTX’s creditors and customers, who have reportedly recovered “billions of dollars to date.” He reassured stakeholders that the team is committed to maximizing recoveries and is actively working to finalize arrangements with distribution agents to expedite the return of funds. Related Reading: Bitcoin Price Almost Hits $98,000: Key Reasons Behind The Rally FTX provided updates on the anticipated timeline for these distributions. In early December, the estate expects to finalize agreements with specialized distribution agents tasked with facilitating the global distribution of recoveries to customers in supported jurisdictions. At that time, FTX will provide detailed instructions for affected customers on how to establish an approved account with these agents through the existing customer portal. What Customers Must Know By the end of December, FTX plans to announce the exact effective date for the distributions, contingent upon a Court Order that will approve the Disputed Claims Reserve Amount—a necessary step outlined in the Confirmation Order. The current expectation is for the Plan to be effective in early January 2025. Following this, the first distribution will be made to holders of allowed claims in the Plan’s Convenience Classes within 60 days. Importantly, the distribution record date will coincide with the effective date, meaning customers will need to be prepared to act swiftly. For customers to qualify for the initial distribution, they must establish an approved account with a distribution agent and complete Know Your Customer (KYC) verification, along with submitting the required tax forms before the distribution record date. Additionally, claims traders should be aware of specific provisions in the Plan regarding trades made within 45 days prior to the distribution record date. Claims traded during this period may not be reflected on the claims register by the end of business on the distribution record date, which could result in distributions being made to the original claim holders rather than the current traders. FTT Price Reacts To Distribution Announcement At the time of writing, FTX’s native token, FTT, is trading at $2.36, reflecting a substantial surge of nearly 10% within the past 24 hours. Over a longer time frame, the token has posted impressive gains, rising around 40% over the past fourteen days and 18% over the past thirty days, in line with the broader market rally following President-elect Donald Trump’s victory on 5 November. Related Reading: Whale Alert: $2 Million PEPE Purchase Sees 105 Billion Tokens Snapped Up Data from CoinGecko further indicates that FTT has experienced a significant rise in trading volume over the past 48 hours, which has surged by 38%, resulting in over $135 million traded during this period. However, it is important to note that FTT’s current price remains significantly below its all-time high of $84, reached during the bull market of September 2021, marking a decline of over 97% from its peak value. Featured image from DALL-E, chart from TradingView.com
Alameda Research, the trading firm affiliated with the collapsed cryptocurrency exchange FTX, has initiated legal action against Aleksandr Ivanov, the founder of Waves, in a bid to recover approximately $90 million in assets as part of Alameda’s broader efforts to repay creditors affected by FTX’s insolvency in 2022. Waves Founder Under Fire In a detailed […]
Caroline Ellison, the former CEO of Alameda Research and key witness in the prosecution of FTX founder Sam Bankman-Fried, reported to a low-security federal prison in Connecticut on Thursday to begin her two-year prison sentence. This development follows her sentencing in September, where she was also ordered to forfeit $11 billion due to her involvement […]
In an ongoing effort to recover assets to repay creditors affected by its collapse in 2022, defunct crypto exchange FTX, once run by 25-year convict Sam Bankman-Fried, has reached an agreement with UAE-based crypto platform Bybit, allowing it to withdraw assets as part of a $228 million settlement. FTX To Recoup Funds From Bybit According […]
The prices of Bitcoin and other digital assets were significantly lower during the 2022 collapse of FTX compared to current market prices.
According to the FTX bankruptcy estate, total claims from injured parties top $11 billion, as a court hearing to confirm the plan looms.
Following the collapse of the FTX exchange, the FTT token collapsed by more than 80% and wiped away over $2 billion in customer value.
Caroline Ellison, the former CEO of Alameda Research and key witness in the prosecution of her ex-partner Sam Bankman-Fried (SBF), was sentenced to two years in prison on Tuesday for her part in the FTX fraud. The sentencing took place on Tuesday in a New York federal court, where Judge Lewis Kaplan also ordered Ellison […]
As disclosed in a recent court filing, Caroline Ellison, the former CEO of Alameda Research, is preparing for her sentencing hearing two years after the collapse of the FTX exchange, once run by her former partner, Sam Bankman-Fried. However, the filing reveals that Ellison is requesting permission to redact sensitive information from her forthcoming sentencing […]
The Solana price has been rocked by the latest bombshell revelations surrounding the collapse of crypto exchange FTX. According to a whistleblower claiming inside knowledge of FTX’s operations, the now-bankrupt company is secretly holding a massive stash of Solana tokens – up to 8% of the entire SOL supply. Triggering Fears Of Massive Sell-Off By the numbers, if these allegations are true, this would equate to approximately 46.5 million SOL tokens worth about $7 billion at the current market price, which is $155 at the time of this writing. Related Reading: Cardano Goes Toe-To-Toe With Ethereum As Whales Scoop Up 120 Million ADA “I’m not saying Solana will go to zero, but if this news is true and FTX starts to sell the tokens in the open market, then it could dump the price of Solana significantly,” warned a crypto user who spread the news on social media site X, known only as Wise Advice. In the wake of the news, Solana’s price plummeted below the critical $160 support level, dropping over 9% in the past two weeks and nearly 4% in the past 24 hours as rumors of FTX’s secret SOL holdings circulated. Solana Price Risks Freefall The revelations come on the heels of the FTX estate’s previous sell-off of discounted SOL tokens to repay creditors affected by the exchange’s collapse. Just two months ago, Bitcoinist reported that the estate offloaded a $2.6 billion trove of SOL at around $102 per token. Venture capital firms like Pantera Capital and Figure Markets scooped up large portions of this discounted SOL allocation. It is worth noting that these tokens remain subject to a multi-year vesting period, limiting their immediate impact on Solana’s market dynamics. On the other hand, the alleged hidden FTX stash, if true, could overshadow the impact of these sales and pose a formidable challenge to the Solana price in the near term. Related Reading: Bitcoin Down But Not Out: BTC To $700,000 Highly Probable Says Analyst With the potential for over $7 billion in Solana tokens to eventually hit the market, the cryptocurrency’s price may face intense selling pressure that could undermine its bullish prospects. Still, it is imperative to note that these are only rumors and have not been confirmed by the exchange’s bankruptcy state, and that no further information has been released on the matter, including whether the state overseeing the exchange’s repayment operations plans to sell these tokens to repay creditors, if true. Potential $140s Plunge In terms of immediate price action, crypto analyst Pratty Crypto has highlighted several technical factors that could signal further downside continuation for the cryptocurrency in the coming days. Pratty Crypto contends that Solana is facing a “lot of confluence” that points to a potential move towards the $140 zone. This includes Solana trading at a discount to the previous quarter’s mid-range, testing a key quarterly open level, and retracing 62% of its recent price run-up. In addition, Pratty Crypto warns that the deeper Solana’s price goes into the $130-$150 order block, the less likely it is to hold, potentially leading to more substantial losses. Featured image from DALL-E, chart from TradingView.com
According to a recent report by Bloomberg Law, the bankrupt crypto exchange once run by Sam Bankman-Fried, FTX, has reached a settlement with the Internal Revenue Service (IRS) regarding a $24 billion claim. The settlement allows FTX to pay a fraction of the amount claimed by the IRS, clearing the way for the exchange to […]
The estate of bankrupt cryptocurrency exchange FTX has completed the sale of a substantial trove of discounted Solana (SOL) tokens, amounting to $2.6 billion. The auctions spanned several weeks and attracted buyers such as Figure Markets and Pantera Capital. These transactions mark a significant development in the bankruptcy proceedings of FTX, previously operated by convicted […]
In a recent development, Sam Trabucco, a key figure in Sam Bankman-Fried’s inner circle, has resurfaced after his absence from the public eye following the collapse of crypto exchange FTX in late 2022. According to Bloomberg, Trabucco has come forward to support Ryan Salame, another former FTX executive who awaits sentencing for his involvement in […]
Customers of the defunct FTX crypto exchange find themselves at the center of a complex bankruptcy case with potentially promising outcomes. While the process has been far from smooth, the recent surge in the crypto market has bolstered the value of FTX’s assets, resulting in the possibility of customers receiving payouts that exceed their initial […]
BlockFi, a centralized crypto lender, recently shut down its web platform and selected Coinbase as its distribution partner for customer fund withdrawals. The move comes as BlockFi aims to ensure a swift transition for eligible customers following the closure of its platform. BlockFi Selects Coinbase As Exclusive Partner According to the company’s press release on […]
In a surprising turn of events, bankrupt cryptocurrency exchange FTX recently announced a new repayment plan to reimburse creditors and customers in full. The plan also includes a substantial compensation offer to account for the time value of their investments. While customers initially expected to be the primary beneficiaries, the biggest winners in this repayment […]
In a significant development, defunct cryptocurrency exchange FTX has unveiled a reorganization plan to reimburse almost all of its customers. The announcement has sparked a substantial surge in the exchange’s native token, FTT, which recorded an uptrend of 52% over the past seven days, reaching a monthly high of $2.29 during Wednesday’s early trading session. FTX Unveils Debt Repayment Strategy FTX estimates its outstanding debts to creditors to be approximately $11.2 billion, as revealed in the reorganization plan published late Tuesday. The company has disclosed that it possesses between $14.5 billion and $16.3 billion, which it intends to distribute among the creditors. Under the proposed plan, customers with $50,000 or less claims will receive approximately 118% of the allowed claim amount. This compensation is slated to be disbursed to around 98% of the creditors, relieving FTX customers who have experienced locked funds since the exchange filed for bankruptcy protection in November 2022. Related Reading: Bitcoin Suffers Massive Outflows Amid Crypto Market Uncertainty, Tops $284 Million FTX stated in a press release on Wednesday that the company could not utilize the appreciation of the missing tokens during the Chapter 11 cases. Instead, FTX had to identify other recoverable sources of value to repay creditors. Following the departure of founder Sam Bankman-Fried, FTX appointed John Ray III as CEO. Ray, speaking on the matter in November 2022, expressed his astonishment at the “complete failure of corporate controls and such a complete absence of trustworthy financial information” witnessed at FTX. Ray further stated in the press release on Wednesday: We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors. FTX’s founder, Sam Bankman-Fried, faced legal consequences, being convicted on seven criminal counts, including charges related to embezzling billions of dollars from FTX’s customers. Bankman-Fried was subsequently sentenced to 25 years in prison. FTT Bulls Eyeing $2.55 For Potential Breakout Continuation As of the latest update, the price of FTT has corrected to $2.050 after reaching its monthly high. This breakout occurred after consolidation between the $1.17 and $1.48 levels. At the current price level, FTT faces a significant resistance at $2.169, which has led to the ongoing correction. If FTT sustains its bullish momentum, the next resistance level to watch is $2.55 in the token’s daily chart. A successful breakthrough of this level could potentially lead to a retest of the $3 mark, which has not been revisited since January. Related Reading: Forget The Price Dip: Ethereum Network Activity Hints At Imminent Takeoff On the other hand, if the price experiences a further correction, FTT bulls should closely monitor the $1.95 and $1.765 levels, as they serve as crucial support levels. It is essential to prevent a loss of the gains achieved over the past month, which amounts to an 18% increase during this period. Featured image from Shutterstock, chart from TradingView.com
Bankrupt cryptocurrency exchange, FTX has unveiled a new repayment plan aimed at reimbursing creditors and customers in full and offering billions in the form of compensation for the time value of their investment. FTX To Reimburse Customers In Full In a press release on May 7, FTX disclosed that it would be repaying 98% of […]
Venture capital firm Pantera Capital successfully acquired an undisclosed amount of discounted Solana tokens in a recent auction orchestrated by the bankrupt FTX exchange managers. While specific details of the auction are not fully disclosed, Pantera Capital, alongside industry stalwarts like Galaxy Digital, had previously made significant investments in SOL tokens, totaling around $1.9 billion […]
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Lawyers for FTX say that customer claims for four SBF-linked cryptocurrencies: MAPS, OXY, SERUM, and BOBA should be heavily discounted or reduced to zero.