- The defeated cryptocurrency exchange collaborated with Kraken and Bitgo to facilitate the distribution of funds to creditors.
- FTX Recovery Trust will continue to reclaim more funds for creditors and resolve outstanding claims.
FTX Recovery Trust has announced that the second phase of the distribution of the funds will start on 30 May 2025. According to the announcement, FTX will distribute more than $ 5 billion among creditors in ease and non-covenant classes of the plan that have completed the requirements for the distribution.
The FTX Recovery Trust collaborated with Kraken and Bitgo Cryptocurrency exchanges to guarantee a seamless distribution of the funds in digital assets, including stablecoins. For all eligible FTX creditors in the second distribution plan, the funds will probably be processed within 1-3 business days from 30 May.
“These first non-welcome class benefits are an important milestone for FTX. The scope and scope of the FTX-creditor-based make this an unprecedented distribution process, and today’s announcement reflects the excellent success of the recovery and coordination of our FT Team of Professionals,” Trust, noted.
The FTX team started a trip to spread $ 14- $ 16 billion in creditors after years of lawsuits. Earlier this year, FTX divided $ 1.2 billion, with more funds allocation expected in the near future.
Market impact of the FTX fund distribution
The distribution of FTX funds to creditors has merged with a broader crypto market bullish recovery, led by Bitcoin -Pomp above $ 100k. The distribution of more than $ 5 billion is likely to add a further purchasing pressure to the Altcoin market, because crypto analysts predict an altea season in the near future.
Cryptocurrency exchanges Kraken and Bitgo will take considerably benefit from the FTX fund distribution, since more creditors register to receive their funds. Ultimately, the resolution of the FTX bankruptcy will open a new chapter of the regular acceptance of cryptocurrencies via regulated fairs.
Credit : coinpedia.org
