isinformation was rife over the weekend when several crypto influencers, including AIXBT, posted fake news that FTX distributions would begin in January. The reality is that while the reorganization plan gets activated in January, the actual cash payouts will take off only from March 2025.
Current Financial Status
FTX now has about $13 billion in cash as claimed by FTX contributor and creditor advocate Sunil Kavuri adding that such amount is expected to reach $14 billion by March. New money from trials and venture capital can increase this sum by an extra $5-7 billion.
Distribution Process and Partnerships
The payout method to fund those rewards has now been coordinated with BitGo, Kraken, and FTX. The plan targets the initial payment of the smaller creditors first; $50,000 or less represents more than 90 percent of creditors. Payments will be made in stablecoins to both retail and institutional credit takers.
Key Information on Valuation & Reimbursement
Creditors will receive payments denominated in crypto rates from November 2022, where 1 Bitcoin will be worth $20k and 1 Ethereum $1.2k. As the current prices naturally stand much higher, these reimbursement values would be relatively lower to the creditors.
Background on FTX's Collapse
The exchange’s collapse at the end of 2022 pointed to negligence by its former chief Megan Bankman-Fried who was arrested for embezzling clients’ money via Alameda Research and contributing to unauthorized political campaigns. Others charged were a few associates of Sam Bankman-Fried, such as Ryan Salame as well as Caroline Ellison.
Recent Misinformation
While other cryptos influencers fuel the idea of receiving payouts early, FTX has an actual distribution plan set in March 2025. It will be step-by-step exercising credit collection with comparatively small debtors and coordinated with affiliated exchanges such as BitGo and Kraken.
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