Investors who lost money when FTX went bankrupt can now file claims to recover their funds by September 29, 2023.
Investors are rushing to buy FTX debts in the bankruptcy claims market, with major credit investors purchasing over $250 million worth of FTX debts, betting on the potential value that could be unlocked once the bankruptcy process is resolved.
BlockFi's liquidation plan has been approved by a US bankruptcy court, bringing the crypto lending platform one step closer to repaying its 100,000-plus creditors.
FTX creditors are expected to receive a significantly higher payout after the recovery of over $7 billion in assets, including a stake in Anthropic and the potential restart of the exchange, boosting the bankruptcy claims market.
BlockFi CEO Zac Prince testified that his lending firm was forced to declare bankruptcy due to its involvement with FTX and Alameda Research, with BlockFi losing over a billion dollars in total. Alameda Research borrowed more than $1 billion from BlockFi, repaying it and then borrowing an additional $850 million before ultimately collapsing.
Bankrupt crypto exchange FTX has proposed a plan to return up to 90% of creditor holdings by dividing missing customer assets into three pools and offering settlements without reduction for preferences under $250,000, but exclusions may apply for insiders and affiliates involved in misconduct.
Lawyers representing some creditors of defunct cryptocurrency exchange FTX are trying to secure a deal that would pay investors up to 90% of the remaining assets, with the approval rate of 75% required by December 1st and a goal to clear bankruptcy by July 2024.
Crypto lending platform BlockFi has emerged from bankruptcy and is now allowing both U.S. and international users to submit withdrawal requests, with plans to repay creditors and attempt to recover assets from other firms.
