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FTX Creditors Receive First Payouts with Interest
Creditors with Claims Below $50,000 Start Receiving Payments
Creditors of the collapsed cryptocurrency exchange FTX have begun receiving their payouts, which include 9% annual interest accrued since November 2022. According to reports on the FTX subreddit, multiple users have received funds on accounts at crypto exchange Kraken with the added interest on top.
Creditors to Receive 119% of Adjudicated Claim Value
Creditors are scheduled to receive roughly 119% of their adjudicated claim value, according to the bankruptcy plan. This means that creditors with claims below $50,000 will receive a total of 119% of their original claim, which includes the 9% interest.
Kraken Distributes Trading-Fee Credits to Users
Kraken has also distributed trading-fee credits to users, which is seen as a way for Kraken to distribute the payouts without profiting from them. According to screenshots shared on Reddit, Kraken distributed trading-fee credits to users, allowing them to earn more by trading on the platform.
Creditors with Claims Exceeding $50,000 to Receive Payments in Q2
Creditors with claims exceeding the $50,000 threshold are set to begin receiving their payments in the second quarter. Around $16 billion is set to be distributed in total, according to reports.
Funds Distributed in U.S. Dollars through BitGo and Kraken
The funds are being distributed in U.S. dollars through both BitGo and Kraken. This allows creditors to receive their payouts in a stable and liquid currency, providing a sense of security and stability during a time of uncertainty.
Conclusion
The first payouts to FTX creditors mark a significant step forward in the company’s bankruptcy proceedings. The inclusion of 9% annual interest demonstrates the company’s commitment to providing fair compensation to its creditors. As the distribution process continues, creditors can look forward to receiving a total of 119% of their adjudicated claim value, providing a sense of relief and closure.
FAQs
Q: How much will creditors with claims below $50,000 receive?
A: Creditors with claims below $50,000 will receive a total of 119% of their original claim, including 9% annual interest.
Q: When will creditors with claims exceeding $50,000 receive their payments?
A: Creditors with claims exceeding $50,000 are set to begin receiving their payments in the second quarter, with around $16 billion set to be distributed in total.
Q: How will the funds be distributed?
A: The funds will be distributed in U.S. dollars through both BitGo and Kraken, providing a stable and liquid currency for creditors.
Q: What is the purpose of the trading-fee credits distributed by Kraken?
A: The trading-fee credits are distributed to allow users to earn more by trading on the platform, providing a way for Kraken to distribute the payouts without profiting from them.
