Former crypto firm FTX will start paying its creditors on May 30, according to lawyer Andrew Dietderich. The company has raised about $11.4 billion in cash since it shut down and filed for bankruptcy in November 2022.
Minor creditors with convenience claims had been receiving payments earlier, but the main group of creditors will have to wait till the end of May. This group includes investors and institutions owed millions of dollars to other entities that held huge amounts on the platform.
FTX to begin major creditor repayments in May
Dietderich informed US Bankruptcy Judge Karen Owens in Wilmington, Delaware, that the delay in paying all creditors stems from a large number of questionable claims. He said that FTX faces “27 quintillion” claims, emphasizing that a quintillion is a 1 followed by 18 zeros. These include duplicates, false claims, or conflict with KYC requiring identity checks.
While such a high number of claims are not unusual in major bankruptcy cases, the lawyer warned that it will take time to filter the invalid ones. He also added that the company is looking to compensate legitimate investors as soon as it can. The case is FTX Trading Ltd., 22-11068, in the US Bankruptcy Court for the District of Delaware.