Kraken has initiated the distribution of funds to creditors of the failed cryptocurrency exchange FTX, which is a critical step in the process of mitigating the consequences of its 2022 collapse.
Creditors who utilize Kraken have received confirmation emails that affirm the completion of the registration process, which facilitates payment processing. BitGo, which has also been chosen as a reseller, will start its process soon, but no date has been set.
Starting January 3, 2025, smaller creditors with claims under $50,000 can anticipate payments within 60 days, guaranteeing that funds are disbursed by March 3, 2025. Nevertheless, there is no specified timeline for claims that exceed $50,000.
Additionally, Kraken is providing incentives to affected users, such as fee-free trading on quantities up to $50,000 and additional credits that are dependent on the settlement size. These credits will be accessible upon the completion of distributions.
As a result of allegations of fraud and misappropriation of customer funds involving Alameda Research, FTX’s bankruptcy in 2022 resulted in substantial losses for both creditors and consumers.
The exchange’s owner, Sam Bankman-Fried, was sentenced to 25 years in prison following its collapse, which was once valued at $32 billion. Kraken and BitGo were responsible for overseeing the recovery and distribution of funds, offering a measure of solace to those affected by the collapse.
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