FTX Estate To Begin Paying Major Creditors With $11,400,000,000 in Cash Reserves: Report
The bankrupt crypto exchange FTX is reportedly primed to begin paying its main group of creditors at the end of May. Business restructuring lawyer Andrew Dietderich said in court last week that the payouts are scheduled to begin on May 30th, Bloomberg reports. FTX will use its $11.4 billion cash reserves, which were amassed after the crypto exchange went down, to reimburse major creditors. FTX classifies its main creditors as individuals and institutions that had millions of dollars stashed in the platform prior to its collapse. Meanwhile, smaller creditors categorized in FTX’s “Convenience Class” started receiving distributions in February, per a press release from the exchange. In October, a US bankruptcy court greenlit FTX’s plan to distribute between $14.7 billion and $16.5 billion worth of payouts to the crypto exchange’s former customers. The plan calls for 98% of the exchange’s creditors to receive approximately 119% of the value of thei...