Michaela
FTX Digital Markets, the Bahamian division of the collapsed crypto exchange FTX, has announced it will start reimbursing creditors who lost access to their funds after the platform’s downfall in November 2022.
FTX creditor Sunil Kavuri revealed in a February 4 post on X that FTX Digital Markets will begin issuing payments to “convenience class” creditors. The notice indicated that users with claims under $50,000 would receive full reimbursement, plus 9% annual interest accrued since the exchange’s collapse in November 2022. The distribution is set to start on February 18.
The notice, which originated from a creditor who filed for recovery through BitGo, has raised questions about the timeline for other platforms involved. While Kraken will also help facilitate the payout of FTX funds to creditors, it is uncertain whether it will adhere to the same schedule. If all claims are fully submitted, FTX is projected to distribute upwards of $16 billion to affected users.
Following years of bankruptcy proceedings and legal battles to recover assets from cryptocurrency companies, debtors confirmed that its reorganization plan officially began on January 3. The first group of creditors slated for reimbursement is anticipated to receive their payouts by early March.
Presidential Pardon for SBF?
In December 2024, speculation emerged that Sam Bankman-Fried, the former CEO of FTX facing criminal charges after the collapse of his crypto exchange, might receive a presidential pardon. While some rumors pointed to a possible pardon from then-President Joe Biden, no official announcements were made.
The speculation surrounding a potential pardon for Bankman-Fried gained momentum after Elon Musk, a close supporter of President Donald Trump, tweeted that he would be “shocked if this doesn’t happen.”
Another factor fueling the speculation was Bankman-Fried’s significant political contributions, including over $5 million donated to pro-Biden super PACs during the 2020 election.
This has sparked speculation about whether his political connections could influence the possibility of a pardon, with comparisons drawn to previous instances where significant political donors received clemency.
There have been no recent updates regarding whether the former FTX founder will receive a pardon from newly inaugurated President Trump. However, Trump did grant a pardon to Ross Ulbricht, the founder of the Silk Road, shortly after taking office.
Read More
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- Celsius Appeals Ruling That Blocked $444M Claim Against FTX
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
