After over 800 days of restructuring, FTX initiated its first creditor repayment in February this year, primarily targeting convenience-class creditors and customers with claims under $50,000.
FTX's Next Repayment Phase
According to Bloomberg, FTX is set to officially begin the repayment process for creditors with claims exceeding $50,000 on May 30. However, the asset value received by creditors is calculated based on the bankruptcy filing date, November 11, 2022, possibly leading to significant losses for those who held mostly cryptocurrencies.
Impact on the Cryptocurrency Market
The market initially anticipated that the February repayments to smaller creditors might boost growth. However, fluctuations from trade disputes and lower-than-expected returns for small creditors kept Bitcoin's performance sluggish. FTX still holds approximately $11.4 billion in cash, and whether this will revitalize the cryptocurrency market remains uncertain and requires assessment.
Suspicious Claims and Consequences
Andrew Dietderich, the lawyer overseeing the bankruptcy, highlighted a recent flood of suspicious claims, slowing down the identification of legitimate creditors. Shockingly, claim records have surged to 27 quintillion, with most deemed fraudulent, sparking outrage.
FTX's ongoing efforts to settle creditor claims remain in focus. The prevalence of fraudulent claims and their impact on processing speed is concerning, while the potential market impact remains unknown.
