Summary
- FTX announced that it will start a large-scale repayment process for creditors holding claims of $50,000 or more starting May 30.
- There are complaints about the discrepancy between repayment amounts and current market prices as the value of claims is calculated based on the bankruptcy filing date.
- It was reported that many claims are considered false or fraudulent, indicating that actual repayments will take time.
The bankrupt cryptocurrency exchange FTX will begin the formal repayment process for creditors holding claims of $50,000 or more starting May 30.
According to Bloomberg on the 29th (local time), Andrew Dietderich, the attorney handling FTX's bankruptcy proceedings, stated, "FTX plans to initiate the first repayment to major creditors from the end of May, based on the $11.4 billion in cash it holds." However, there are complaints that the repayment amounts are evaluated based on the value at the time of the bankruptcy filing, leading to a significant discrepancy with current market prices.
Dietderich explained that "FTX has received claims amounting to approximately 27 quintillion (10 to the power of 18), many of which are considered false or fraudulent," indicating that actual repayments may take time.
Meanwhile, FTX is calculating the value of claims based on the market rates at the time of its bankruptcy filing on November 11, 2022. As a result, the cryptocurrencies held by investors are being repaid in cash based on the market value at that time, without reflecting any subsequent price increases. Bitcoin, which was about $16,000 at the time, is now trading at over $80,000, more than five times higher. Solana has risen by 650%, Ripple by 450%, and Ethereum has increased by more than 47% during the same period.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
