{"id":176009,"date":"2023-10-17T22:51:14","date_gmt":"2023-10-17T17:21:14","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=176009"},"modified":"2023-10-17T22:51:14","modified_gmt":"2023-10-17T17:21:14","slug":"ftx-bankruptcy-payout-for-clients-expected-by-mid-2024-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ftx-bankruptcy-payout-for-clients-expected-by-mid-2024-crypto-news\/","title":{"rendered":"FTX Bankruptcy Payout for Clients Expected by Mid-2024 – Crypto News"},"content":{"rendered":"

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FTX clients may get a substantial payout totaling $9.2 billion by mid-2024, as part of the ongoing bankruptcy proceedings<\/a> involving the exchange. This follows a statement<\/a> on Tuesday revealing that an agreement had been reached between creditors and the new management of the platform, marking a significant milestone in resolving clients\u2019 property disputes.<\/p>\n

The $9.2B Settlement for FTX Creditors<\/strong><\/h2>\n

This pivotal agreement follows extensive deliberations, but to proceed further, a court approval is required, with an application deadline of December 16, 2023. Under the proposed plan, platform users are slated to receive approximately $8.9 billion, while the American division is set to be allocated $166 million. These sums represent more than 90% of the exchange\u2019s assets as of the second quarter of 2024.<\/p>\n

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Commenting in the statement, FTX\u2019s current CEO, John Ray<\/a> noted;<\/p>\n

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\u201cThe proposed settlement of the customer property issues is another major milestone in our case. Together, starting in the most challenging financial disaster I have seen, the debtors and their creditors have created enormous value from a situation that easily could have been a near-total loss for customers.\u201d<\/em><\/p>\n<\/blockquote>\n

FTX Recovery Plan Details <\/strong><\/h2>\n

<\/p>\n

Notably, the new plan involves segregating FTX assets into three categories; one for FTX users, one for FTX.US clients, and a common pool for other assets. The plan will however exclude insiders, affiliates, and clients who may have been privy to the misuse of deposits and corporate funds, further ensuring a fair distribution of assets.<\/p>\n

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Earlier this year, FTX estimated the deficit in funds to cover creditor claims at $8.7 billion, with approximately $1.6 billion in Bitcoin. However, in June 2023, the platform\u2019s management announced the return of around $7 billion in liquid assets. Legal disputes with other entities, such as Genesis, have also shaped the ongoing proceedings, further contributing to the settlement negotiations.<\/p>\n

Meanwhile, the latest statement comes amid the unfolding criminal trial of FTX founder Sam Bankman-Fried, where revelations about the extent of his extravagant spending have taken center stage. On Monday Nishad Singh, the former engineering director of FTX, testified<\/a> that he repeatedly voiced his concerns to Bankman-Fried, characterizing the company\u2019s expenditures as excessively lavish.<\/p>\n

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\u2713 Share:<\/p>\n

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Newton Mbogo is a crypto and DeFi specialist. He has a B.A Hons in Law from Kabarak University, where he studied complex economic, legal, and ethical theory relevant to the FinTech landscape. Newton has a particular interest in decentralization and privacy blockchains, as they directly relate to our human rights and flourishing. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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–><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

FTX clients may get a substantial payout totaling $9.2 billion by mid-2024, as part of the ongoing bankruptcy proceedings involving the exchange. This follows a statement on Tuesday revealing that an agreement had been reached between creditors and the new management of the platform, marking a significant milestone in resolving clients\u2019 property disputes. The $9.2B […]<\/p>\n","protected":false},"author":2,"featured_media":162582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-176009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/176009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=176009"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/176009\/revisions"}],"predecessor-version":[{"id":176013,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/176009\/revisions\/176013"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/162582"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=176009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=176009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=176009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}