Almost two years have passed since the shocking collapse of the now-defunct cryptocurrency exchange FTX, which caused over nine million customers' wallets to lose $10 billion.
A ray of optimism appears from the FTX bankruptcy estate as it expresses confidence in eventually repaying its clients, while claims wait in limbo for reimbursement.
FTX Bankruptcy Estate Sees Year-End Full Payment
Speaking at a meeting of FTX Digital's Joint Official Liquidators in the Bahamas, the bankruptcy estate of the company stated that it hopes to begin paying back its clients before the end of the year.
The estate is negotiating two separate legal proceedings: the official liquidation of FTX Digital, an exchange subsidiary headquartered in the Bahamas, and the Chapter 11 bankruptcy filed in Delaware.
In order to guarantee that creditors can present their claims to either side and obtain the entire amount they are entitled to, both wings of the estate have decided to work together.
Since the portal's launch on March 1, creditors have been able to submit claims through the FTX claims portal. The deadline for users to select one of the two bankruptcy procedures and file a claim is May 15. But according to the meeting, the deadline is anticipated to be extended until at least June 2024.
A revised Chapter 11 plan detailing a plan to compensate victims based on the monetary worth of digital assets held on the exchange at November 11, 2022 rates was filed by the FTX Debtors’ Estate in December 2023.
The plan has been challenged by FTX creditors, who claim that it is unjust because there has been a notable increase in cryptocurrency prices since the bankruptcy date. Since November 2022, Solana, which makes up more than 34% of FTX's assets, has increased by more than 1600% to $200. In the meantime, the value of Bitcoin, which makes up 15% of the exchange's holdings, has increased to an all-time high of $73,000, a gain of more than 370%.
April 2024, Cryptoniteuae