The regulator of failed Bitcoin (BTC) and cryptocurrency exchange FTX announced yesterday, March 18, that it will distribute an additional $2.2 billion to creditors as of March 31, 2026.
This expenditure is part of a Chapter 11 bankruptcy reorganization plan. Designed to restore funds to affected users Following the company’s bankruptcy in November 2022.
According to a statement from FTX, the capital transfer will be split between small and large investors who held balances in Bitcoin (BTC) and other digital assets at the time of the shutdown.
This schedule provides that eligible creditors will receive assets through specific channels. According to the entity, Funds are delivered within 1-3 business days via BitGo, Kraken, and Payoneer platforms This logistics is aimed at speeding up the restoration of liquidity to thousands of users who have been waiting for more than three years to recover some of their assets.
To figure out how to get out of bankruptcy, Reimbursement structures distinguish between different categories of affected people.. Payments will be sent to holders of approved debt under the “convenient and non-convenient classes of restructuring plans.” The former group includes small claims that allow for quick initial distribution, while the inconvenience category includes large or complex claims that require payment at a later stage.
Impact on major creditors and retailers
Sunil Kavri, head of FTX’s largest creditor group, elaborated on the scope of this new financial move. In this regard, he explained, “Claims over $50,000 will receive an 18% share, for a total of 96% to date.”
Similarly, for other debt tranches, “claims over $50,000 will receive a 5% distribution, amounting to 100% of the total amount accumulated to date,” the representative said.
The plan also includes measures for retail users. For claims under $50,000, “payments will amount to 120% of the previous total amount” to compensate for waiting time and nominal devaluation of claims.
on the other hand, Based on the preferred stockholder agreement, the current board of directors:“The record date for payments to holders of preferred stock on May 29, 2026 has been set as April 30, 2026.”
Controversy over causes of crisis and valuation
The process dates back to late 2022, when the company founded by Sam Bankman Freed collapsed due to management fraud. FTX filed for bankruptcy on November 11, 2022 under Chapter 11 of the Bankruptcy Code. Regulations that allow companies to restructure and pay creditors rather than being completely liquidated.
Under this redemption system, Cryptocurrency claims will be returned in dollars at the November 11, 2022 price, not the current price.This means that creditors receive the nominal value of the asset at that point in time without receiving the value that Bitcoin and other cryptocurrencies have received since then.
Market expectations for reinvestment
This large injection of liquidity could have ripple effects on the market, creating a buyback opportunity for many investors.
Users who originally owned digital assets tend to maintain interest in the area, so a significant portion of the $2.2 billion A return to Bitcoin and cryptocurrencies could result in significant buying pressure in the weeks following delivery.
It should be noted that payments to creditors will begin in February 2025, with the first repayment amounting to $1.2 billion, as reported by CriptoNoticias. The current management team continues to liquidate venture capital investments to meet set schedules and complete one of the largest asset recoveries in recent financial history.
(Tag Translation) Exchange (Exchange)
