The bankrupt cryptocurrency exchange FTX has announced a third round of payments to creditors. It will take place on September 30, according to a press release.
The bankruptcy court approved a reduction in the claims reserve from $6.5 billion to $4.3 billion, allowing the platform to pay an extra $1.9 billion to affected customers.
The claims accounting date is August 15. Only users whose claims were registered by this date will be able to receive funds. Payments will be made through BitGo, Kraken, and Payoneer. Creditors must complete a KYC check, provide tax forms, and register with one of the platforms.
As of July, FTX had paid out $6.2 billion to customers in two distributions—$1.2 billion in February and $5 billion in May. The overall restructuring plan calls for returning between $14.7 billion and $16.5 billion.
Ninety-eight percent of creditors will receive at least 119% of the value of their claims as of the time of bankruptcy in November 2022. Many creditors have criticized this compensation calculation, as current crypto market prices are significantly higher than they were two years ago.
“Problem” countries
On July 4, FTX proposed measures to assess claims in “problem” jurisdictions. The list included 49 countries, such as China, Russia, Ukraine, Pakistan, and Saudi Arabia. Creditors in these jurisdictions would not be able to receive any payments.
However, at a hearing on July 22, the court rejected the “immediate dismissal” clause and ordered FTX to reconsider the plan. Customers’ claims may be moved to another jurisdiction, such as Hong Kong.
