In an effort to address widespread confusion, Sunil Kavuri, a well-known FTX creditor has stepped in and clarified the repayment schedules and the correct details for the FTX creditors. According to Kavuri, FTX’s first distribution will occur on February 18, 2025 at 10 PM ET, covering claims under $50,000 with a total payout of approximately $1.2 billion, representing a 119% recovery. Notably, $345 million remains unclaimed due to pending KYC verification.
For the claims exceeding the $50,000 totaling over $17 billion, the initial payout of approximately $7 billion will be distributed in stages, starting in Q2 2025, although a specific date has not been set.
Clearing up the misinformation, it is important to note that the $7 billion payout will not occur next week, as previously reported below. Instead, the first distribution of $1.2 billion will take place on February 18, 2025.
Recovery Details and Distribution Plan
According to the FTX’s Creditor Recovery Summary, istrative claims, tax claims, and secured claims will be fully covered. The total creditor recoveries are estimated to be between 123% to 138%, Dotcom and the U.S. customers will see recoveries ranging from 126% to 140% and 123% to 131% respectively.
The exchange will allocate funds based on the claims that have been already defined. Dotcom customers hold the largest claims, valued at $7.995 billion while U.S. customer claims total $8.836 billion. Convenience class creditors will receive a fixed percentage, with additional funds from the asset recovery efforts.
Initial Payout and Future Distributions
The first phase of distribution is looking out for secured and priority claims. This will ensure that the immediate relief is provided to the affected creditors. The remaining funds will be released via multiple stages in the coming months, depending on the recovery of the stolen assets and liquidation of remaining holdings.
On the other hand, creditors have raised concerns over the use of November 2022 prices. The prices back then were extremely low and the prices right now have increased significantly since the bankruptcy. To this, the FTX restructuring team emphasizes that this approach will ensure fair and transparent distribution.
As the exchange is moving ahead with the repayment plan, the creditors will closely look for developments to make sure that the process is carried out as per the legal and financial commitments made.
Conclusion
FTX’s repayment schedule has been clarified, addressing the widespread misinformation. The corrected details confirm that the first distribution of $1.2 billion will occur on February 18, 2025, covering claims under $50,000, while larger claims will be paid in stages starting in Q2 2025.
Also Read: WazirX Announces Sixth Townhall Meeting Amid Community Backlash
