The leading voice for FTX Collapse victims, @Sunil_trades, confirmed the date for the next batch of redistribution of lost assets.
Sunil, an Activist who has appeared on various media outlets on this issue, shared the timeline for the next batch of redistribution and the category of creditors that will benefit.
According to Sunil, the Distribution Record Date Claims for creditors who lost over $50,000 will commence on 11 April 2025.
On 30th May 2025, the distribution of assets to creditors who lost over $50,000 will commence. Creditors who lost less than $50,000 and were not credited in the first distribution round would also be credited on this day.
The initial distribution round commenced this week, and several creditors confirmed receiving their tokens back.
The Collapse of the FTX exchange, led by Sam Bankman Fried, was a major scandal that nearly ended the Crypto industry.
What is the Redistribution Price?
After a much-elongated wait, FTX started repaying victims of its Collapse in 2022.
FTX is repaying based on the value of crypto assets as of November 2022, the time of the bankruptcy filing. This approach did not sit well with creditors, who believed the exchange had cost them the percentage yield of Bitcoin since the collapse.
Bitcoin has surged by approximately 390% since November 2022, when the exchange filed for Bankruptcy. Despite the creditors’ complaints, the repayment plan was approved, and the process has commenced.
The FTX Creditors are split into two groups based on the value of their assets.
The first group is creditors with less than $50,000 on the platform. This group is called the “Convenience Class,” and they receive their full payment alongside a 9% annual interest rate.
The Second group is creditors who lost over $50,000 on the platform. They are being paid based on the price of Bitcoin in November 2022.
FTX Bankruptcy Triggered by Liquidity Crisis
FTX filed for Bankruptcy on November 11, 2022, when the exchange could no longer process withdrawal orders.
The Exchange filed for Chapter 11 bankruptcy on November 11, 2022. The filing included FTX Trading Ltd., FTX US, Alameda Research, and over 130 affiliated entities.
Shortly after the bankruptcy filing, Sam Bankman-Fried (SBF) resigned as CEO, and John J. Ray III took over to manage the restructuring.
SBF was sentenced to 25 years in federal prison on March 28, 2024, after being convicted on seven criminal counts. His charges include Wire fraud, Wire Fraud Conspiracy, Securities fraud, and Money Laundering.
