The bankruptcy estate of defunct cryptocurrency exchange FTX has announced that its next payment to creditors will be made on March 31st, continuing one of the crypto industry’s largest and most-watched repayment processes.
The company said in a statement Tuesday that the funds will be transferred to creditors of record as of Feb. 14.
The company also said it has revised its proposal to reduce its disputed debt reserves, which, if approved by the bankruptcy court, could free up additional funds for short-term dividends.
Meanwhile, the estate continues to pursue litigation aimed at recovering assets it claims were wrongfully transferred before the exchange’s collapse in November 2022.
Bitcoin mining company Genesis Digital Assets is fighting a lawsuit filed by FTX Real Estate for about $1 billion, according to Bloomberg Law. The case is part of a broader “clawback” strategy to not only determine which assets remain, but also to challenge transfers made before the exchange’s collapse.
According to Bloomberg Law, Genesis is seeking to dismiss the lawsuit, denying the foundation’s claims and contesting the legal basis for pursuing the alleged transfer.
Taken together, these two developments illustrate how the aftermath of FTX’s collapse has evolved into more than just payments. As creditors move closer to raising funds, real estate is also drawing a new front, involving a multibillion-dollar dispute that could determine how much creditors ultimately collect and which counterparties are forced to repay funds they have already received.
