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FTX Eurozone Creditors Set for Payouts Next Week

FTX creditors will receive payouts in euros based on 2022 prices, but legal fees could significantly reduce their compensation.

1 min 10 secOctober 5, 2024

Highlights:

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Bitcoin valued at $16,486; Ethereum at $1,241.

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Up to 30% of payouts may cover bankruptcy legal fees.

FTX Eurozone Creditors Set for Payouts Next Week

FTX creditors in the eurozone are set to receive payouts as early as next week, with compensation determined by 2022 closing prices. Bitcoin deposits will be reimbursed at a rate of $16,486, while Ethereum holders will receive $1,241 per token. This payout structure is part of FTX's ongoing bankruptcy proceedings, which have been marked by significant legal fees.

 

 

Creditors should be aware that up to 30% of their payout may be deducted to cover bankruptcy legal fees, which have reached staggering amounts. Recent reports indicate that FTX has incurred approximately $1.45 billion in legal costs, surpassing the $1.42 billion owed to creditors. This situation raises concerns about the financial viability of the compensation plan, as creditors may end up receiving less than anticipated due to these fees.

 

 

The reorganization plan aims to distribute between $14.5 billion and $16.3 billion in total assets, ensuring that around 98% of creditors will receive at least 118% of their claims within 60 days of the plan's approval. However, the inability to benefit from the appreciation of cryptocurrencies during the bankruptcy has complicated matters for both FTX and its creditors.

 

As FTX navigates these complex proceedings, stakeholders remain hopeful for a resolution that maximizes recoveries while minimizing further legal expenses.

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