Former cryptocurrency firm FTX will begin paying its creditors starting May 30, 2025, according to company lawyer Andrew Dietderich.
Debts and Payments
Since its shutdown and bankruptcy declaration in November 2022, FTX has accumulated $11.4 billion in cash. Minor creditors with 'convenience claims' began receiving payments earlier, but the main group of creditors must wait until the end of May.
Claims Issues
Andrew Dietderich informed US Bankruptcy Judge Karen Owens that the delay in paying all creditors is due to a large number of questionable claims. FTX faces '27 quintillion' claims, including duplicates, false claims, or those conflicting with KYC requiring identity checks. Given these factors, it will take time to filter out the invalid ones.
Bankruptcy Process
While such large numbers of claims are not unusual in major bankruptcies, the company seeks to compensate legitimate creditors as soon as it can. The case FTX Trading Ltd. is filed in the US Bankruptcy Court for the District of Delaware.
FTX strives to resolve multiple claims and begin payments to legitimate creditors as soon as possible, despite significant challenges in the bankruptcy process.
