FTX Users With Claims Under $50,000 Begin Receiving Funds Via Kraken And Bitgo – Details
The post FTX Users With Claims Under $50,000 Begin Receiving Funds Via Kraken And Bitgo – Details appeared on BitcoinEthereumNews.com.
Collapsed cryptocurrency exchange FTX has announced the commencement of payouts to users with claims below $50,000, marking a significant step in its recovery process. According to a recent announcement, these creditors will receive approximately 119% of their adjudicated claim value, which includes an annual interest rate of 9% accrued since November 2022. Kraken And BitGo Facilitate FTX Fund Distributions Under FTX’s recovery plan, 98% of creditors are expected to receive at least 118% of their claim value in cash. The repayment process is being facilitated by two crypto exchanges, Kraken and BitGo, which are converting the payouts into US dollars. However, to participate in this distribution, creditors must complete Know Your Customer (KYC) verification, submit the required tax forms, and onboard with either BitGo or Kraken. Users on the FTX subreddit have already reported receiving funds in their Kraken accounts, inclusive of the additional interest. For creditors with claims exceeding the $50,000 threshold, payouts are slated to begin in the second quarter of 2024. The next scheduled distribution will occur on May 30, targeting holders of allowed claims categorized as “Class 5 Customer Entitlement Claims” and “Class 6 General Unsecured Claims.” This group includes customers who had assets on the FTX platform when it collapsed, as well as other creditors like vendors and trading partners. Sunil Kavuri, an FTX creditor and advocate, noted that creditors must have verified their claims by the record date of April 11 to qualify for the upcoming distribution. FTX estimates that the total value of the May distribution will range between $14.5 billion and $16.3 billion. Customer Discontent Lingers John J. Ray III, the plan administrator of the FTX Recovery Trust, expressed gratitude to customers and creditors for their patience and cooperation throughout this complex process. “Our work is not over — we intend to…
Filed under: News - @ February 21, 2025 5:10 am