FTX Unleashes $1.9B: The Great Disputed Claim Circus Rolls On 🎪💸

by

In the grand theater of bankruptcies, FTX has decided to hand out a little somethin’—$1.9 billion, no longer shackled by disputed claims. Because who doesn’t love a good dispute-free feast? 🍽️

The noble FTX Recovery Trust and its loyal debtor, FTX Trading, announced with the grace of a ballet that their latest act begins on September 30. They’ve chosen August 15 as the mythical record date—probably to see who’s still awake. 🗓️

This marks round three, folks! After the $1.2 billion curtain call in February, and a generous encore of $5 billion in May, the cash keeps flowing. The bankruptcy court, ever the generous host, finally agreed to trim the disputed claims reserve from a hefty $6.5 billion to a modest $4.3 billion—because who needs that much drama, really? The cash, now freed, is being doled out to those deemed “allowed claims.” Cue the applause. 👏

Disputed $4.3 billion—Doubt and Perhaps China

Of course, not all claims are as clear as a pristine country lake. The disputed $4.3 billion still lurks in shadows, and it’s anyone’s guess which claims will see the light of day. Rumor has it, China is on the naughty list, maybe—creditor Sunil Kavuri boldly states the upcoming $1.9 billion won’t include creditors from “restricted jurisdictions.” (Sounds fancier than it is.)

Disputed Claims Chart

Sunny side up, Kavuri says, “Their claims haven’t been approved yet, and honestly, they’re unlikely to be anytime soon.” Meanwhile, the rewrite of the motion regarding these jurisdictional restrictions is happening faster than a blockchain transaction on turbo mode. 🏎️

Plus, this new round might throw a bone to those who’ve already received partial payments over $50,000—because who doesn’t appreciate some déjà vu in their financial horror story? 💰

“Restricted Jurisdictions”—The Court’s Cliffhanger 🎬

Back in July, the court scene was tense—with a hearing where many hoped for decisive rulings on whether FTX could freeze payments in a dozen or so jurisdictions suspected of legal mischief. Spoiler: not much happened—just objections, delays, and some court-approved breathing space for FTX. Because reasons. 🌀

Courtroom Drama

Creditor Weiwei Ji, tuned in virtually, reports that instead of a definitive answer, the court sent FTX back to the drafting board—like a bad rewrite of a blockbuster script. “They must provide a more detailed, workable framework,” they said. Essentially, “show me the money” with some jurisdiction rules sprinkled in. ✍️

CryptoMoon reached out for comments, but silence. Probably the sound of the wind echoing through empty courtrooms or just FTX playing hide-and-seek. 🕵️‍♂️

Read More

2025-07-24 15:05