FTX to distribute an additional $1.6 billion at the end of this month…third repayment begins
Summary
- Bankrupt FTX said it will carry out an additional $1.6 billion repayment to creditors starting September 30.
- The third repayment will cover both retail investors categorized as convenience creditors and creditors with large claims categorized as non-convenience creditors under Chapter 11 proceedings.
- FTX said it is expected to speed up the completion of the restructuring process by maintaining protection for retail creditors while also repaying large creditors.
Bankrupt crypto exchange FTX will carry out an additional $1.6 billion repayment to creditors starting September 30.
On the 20th (local time), The Block reported that FTX will begin a third distribution to creditors from the 30th and carry out an additional $1.6 billion repayment. This distribution is part of Chapter 11 (U.S. Bankruptcy Code) proceedings.
This repayment covers both convenience creditors and non-convenience creditors. Convenience creditors refer to retail investors and individual traders who make up 99% of FTX's creditors, while non-convenience creditors include creditors with large or complex claims.
In the first and second repayments, refunds were made mainly to retail investors, and about 120% of the balances as of November 2022, just before the bankruptcy, were repaid. With this third repayment, FTX is expected to continue its policy of protecting retail creditors while also repaying large creditors, accelerating the completion of the restructuring process.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
