FTX News: FTX to Repay Major Creditors by End of May Amid Questions Over Claims

In the ongoing aftermath of the FTX collapse, the cryptocurrency exchange has announced a repayment plan for its creditors. However, the process is complicated by a staggering number of questionable claims.

FTX to Pay Back Major Creditors by End of May

FTX plans to repay its major creditors by the end of May. Minor creditors, holding what FTX labels as “convenience claims,” have already started receiving payments. The main group of creditors, including institutions that lost millions when the exchange collapsed in 2022, must wait until the end of May. The delay stems from a vast number of questionable claims, amounting to 27 quintillion, which include duplicates, false claims, or conflicts with KYC requirements. FTX is working to filter these claims.

FTX to Begin Repaying Creditors on May 30 After 27-Month Bankruptcy Battle

FTX, the collapsed cryptocurrency exchange, is set to begin repaying creditors on May 30. According to court filings, the exchange will initiate repayments for creditors owed more than $50,000 from its $11.4 billion cash reserve. The company is dealing with a staggering number of claims, totaling what has been described as ’27 quintillion’ submissions, many of which are fraudulent or inflated. The exchange is currently led by restructuring expert John RAY III.