FTX to Distribute $900M to Creditors on July 31
Highlights
- FTX will distribute $900 million to creditors on July 31 as part of the Chapter 11 Plan of Reorganization.
- This marks the fifth distribution to creditors.
- This comes as FTX's founder continues to push for a pardon.
Defunct crypto exchange FTX is set to make another round of repayments to creditors at the end of this month. This comes as the crypto market rebounds amid the latest escalation in the U.S.-Iran war.
FTX To Make Fifth Repayment To Creditors On July 31
In a press release, the defunct exchange announced that it will commence distributions on July 31 in line with its Chapter 11 Plan of Reorganization to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements by the Record Date of June 16.
This marks the fifth distribution from FTX, with the exchange paying almost $900 million to creditors. Eligible creditors will be able to receive their funds from their selected distribution service provider, which includes Kraken, Payoneer or the top custody provider BitGo.
The exchange stated that it will announce subsequent record and payment dates in due course. The defunct exchange also plans to make a second payment to eligible Preferred Equity Holders on July 31.
This latest planned FTX repayment comes as the U.S. Senate rejected a clemency for the exchange’s founder, Sam Bankman-Fried (SBF). SBF continues to push for a presidential pardon, although President Trump has signaled that he has no plans to pardon the crypto founder.
Details On The Payment To Preferred Shareholders
The second Preferred Payment will be made from the Preferred Shareholder Remission Fund Trust (PSRFT) to Preferred Equity Holders eligible as of June 16. The eligible shareholders will receive $18 million under this second repayment, bringing total payments from the PSRFT to $95 million.
FTX will make these payments through Kraken and BitGo for individual and institutional shareholders, respectively. The exchange noted that outreach to Preferred Equity Holders began in January this year.
The FTX bankruptcy case remains in court with an Omnibus Hearing scheduled for July 23. Meanwhile, the court will hold another Omnibus Hearing on August 16.
For more information on crypto exchanges in the U.S., please check out our page on Best Regulated Crypto Exchanges in the USA
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