The post FTX Begins Repayments for Smaller Claims, Larger Claims Expected in May 2025 appeared on BitcoinEthereumNews.com.

The FTX bankruptcy proceedings have taken a significant step forward as the exchange initiates repayments for lower-value claims, marking an essential milestone in the recovery process. The repayment strategy aims to address the claims of over 46,000 creditors affected by FTX’s collapse, symbolizing a crucial effort in restoring confidence within the crypto community. According to a statement from Kraken’s co-CEO, Arjun Sethi, “I am pleased to announce a milestone: KrakenFX has completed the first distribution of funds from the FTX estate to over 46,000 creditors.” This article discusses FTX’s repayment strategy for creditors, covering ongoing distributions and recovery efforts aimed at resolving the aftermath of the exchange’s bankruptcy. FTX Initiates Repayment Process for Lower-Value Claims The beleaguered FTX crypto exchange has commenced a structured repayment plan aimed at those who filed claims worth $50,000 or less. With approximately $1.2 billion set aside for this initial distribution, users can expect compensation through digital asset management platforms BitGo and Kraken. This first phase is crucial in addressing the needs of a significant number of affected creditors. As highlighted by Kraken, they have successfully processed funds for over 46,000 creditors, marking a promising development in the pursuit of recovery. These repayments will also include an impressive 118% in accrued interest, creating a somewhat favorable outcome for those involved. Nonetheless, it’s important to note that all repayments will be conducted in USD rather than cryptocurrency. Preparations for Higher-Value Claims and Future Steps Anticipation builds for the next phase of repayments, scheduled to initiate on May 30, 2025, targeting claims exceeding $50,000. John J. Ray III, the FTX Recovery Trust administrator, emphasized the ongoing commitment to address all classes of claims, highlighting, “We are pleased to commence initial distributions today and set the timeline for our next distribution… Our work is not over – we…

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Filed under: News - @ February 19, 2025 9:27 pm