creditor – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Tue, 19 Aug 2025 14:11:45 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 creditor – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 WazirX Restructuring Plan Wins 95% Creditor Approval, Awaits Court Ruling https://earlybirdsinvest.com/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/ https://earlybirdsinvest.com/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/#respond Tue, 19 Aug 2025 14:11:45 +0000 https://earlybirdsinvest.com/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/

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Anas Hassan

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Anas Hassan

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Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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Indian crypto exchange WazirX has secured overwhelming creditor support, with more than 95% of voters backing its latest restructuring proposal, which now awaits regulatory approval from the Singapore High Court.

The creditor vote on the restructuring framework means the plan now requires judicial endorsement from Singapore’s court to authorize the Amended Scheme following the platform’s hacking incident.

According to a recent statement, WazirX Founder Nischal Shetty outlined that the restructuring blueprint includes platform preparations to restart operations and restore trading services for users “within 10 business days of the scheme taking effect.”

WazirX Creditor Voting Results and Process

The voting process, coordinated by parent entity Zettai Pte Ltd., was conducted through Kroll Issuer Services between July 30 and August 6, with eligibility restricted to account holders maintaining positive balances as of July 18, 2024.

A total of 149,559 creditors representing $206.9 million in validated claims took part in the process.

Among all participants, 143,190 creditors representing $195.7 million endorsed the proposal, exceeding the statutory thresholds established under Section 210(3AB) of the Singapore Companies Act 1967.

WazirX highlighted the results across social media platforms, disclosing that precisely 95.7% of participating Scheme Creditors backed the Amended Scheme of Arrangement.

The cryptocurrency exchange stated that “this outcome reaffirms the strong support shown in the first round of voting and reflects our community’s continued confidence in the restructuring plan.”

The restructuring framework proposes asset distribution through Zanmai India, which operates under India’s Financial Intelligence Unit oversight, designed to maintain transparency and regulatory compliance.

WazirX Restructuring Plan Wins 95% Creditor Approval, Awaits Court Ruling

Following court acceptance of the filing, Zettai will notify creditors via official communications, including copies of the relevant legal documentation.

This represents the second restructuring vote to advance after the Singapore Court previously dismissed the initial proposal.

Although the first plan also received majority creditor support, judicial authorities expressed concerns regarding the proposal’s equity and practical viability.

During that period, the exchange faced criticism from frustrated creditors who alleged fraudulent behavior due to extended delays.

The platform initially committed to asset redistribution by February 2025, leading many to suspect the exchange was exploiting legal complications to postpone user repayments.

Subsequently, in June, WazirX filed for reconsideration, and the court permitted additional arguments while extending the protective moratorium.

By August 2025, judicial authorities mandated a second vote on the modified restructuring scheme, providing WazirX another opportunity to advance its proposal.

WazirX Creditors Uncertain About Recovery Timeline of Funds

A disaster occurred in July 2024 when the WazirX platform suffered a cyberattack allegedly orchestrated by North Korea’s Lazarus Group, based on intelligence from the U.S. Department of State.

The incident resulted in losses exceeding $230 million, representing 45% of the platform’s total $500 million in holdings.

WazirX’s Singapore-registered parent company, Zettai Pte Ltd, immediately pursued creditor protection and received a four-month moratorium from Singapore’s High Court in September 2024, providing time to develop a comprehensive restructuring strategy.

Despite the positive voting outcome, WazirX customers remain skeptical about fund recovery prospects.

In February, the cryptocurrency exchange disclosed that reimbursements might face delays, potentially extending until 2030, contingent on the restructuring scheme’s final approval status.

The company’s communication outlined dual scenarios, one pathway if the restructuring gains approval and an alternative if rejection occurs.

Based on WazirX’s published framework, successful restructuring would enable systematic repayment scheduling, allowing creditors to recover assets more efficiently.

However, if the scheme faces rejection, creditors might endure prolonged uncertainty while the company’s ownership disputes remain unresolved.

If WazirX proceeds to liquidation, creditors may experience reduced recoveries due to liquidation expenses and the absence of recovery enhancement mechanisms.

The company also warned that extended proceedings could result in creditors missing future market appreciation, as asset values may diminish by the time of final distribution.


]]> https://earlybirdsinvest.com/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/feed/ 0 54012 FTX continues to exclude Nigeria and China in remaining creditor repayments but includes Payoneer https://earlybirdsinvest.com/ftx-continues-to-exclude-nigeria-and-china-in-remaining-creditor-repayments-but-includes-payoneer/ https://earlybirdsinvest.com/ftx-continues-to-exclude-nigeria-and-china-in-remaining-creditor-repayments-but-includes-payoneer/#respond Wed, 11 Jun 2025 08:39:14 +0000 https://earlybirdsinvest.com/ftx-continues-to-exclude-nigeria-and-china-in-remaining-creditor-repayments-but-includes-payoneer/

FTX, the bankrupt crypto exchange, has added Payoneer to its creditors’ repayment options, according to a June 10 statement.

The new company would serve as an additional asset distribution channel, alongside BitGo and Kraken.

Payoneer operates a global payments platform across more than 190 countries and territories. Under the agreement, Payoneer will help distribute funds to retail customers in eligible jurisdictions, which aligns with FTX’s ongoing reorganization plan.

This new option will be available for all future distributions made after May 30, 2025.

FTX clarified that customers choosing this method will waive their right to direct US dollar distributions. Instead, the bankrupt exchange will transfer funds to Payoneer, which will credit the customer’s chosen bank account.

The company stressed that the value received will align with each customer’s entitlement under the plan, regardless of currency.

This development follows FTX’s recent completion of two significant repayment phases. The exchange returned nearly $7 billion to creditors across both rounds, roughly $1.8 billion in the first phase and $5 billion in the second.

Notably, retail investors with smaller claims were repaid mainly in full, while larger creditors with claims exceeding $50,000 have faced limits on full recovery.

FTX creditors in Nigeria and China remain excluded

Despite adding Payoneer to the distribution process, FTX’s repayment reach remains incomplete.

Thomas Braziel, a specialist in FTX claims at 117 Partners, pointed out that the new channel primarily benefits customers in India, Indonesia, Japan, and select US states where restrictions on crypto custodians previously blocked payouts.

He furthered that many FTX creditors in key markets like Russia, China, Egypt, and Nigeria remain sidelined from the ongoing repayment process.

Interestingly, creditors from these countries made up a significant portion of FTX’s user base before its collapse. For context, FTX’s data shows that creditors from China alone represent 8% of total claims.

The ongoing lack of access for these regions highlights persistent gaps in FTX’s global asset recovery, raising concerns about fairness and transparency as the process progresses.

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]]> https://earlybirdsinvest.com/ftx-continues-to-exclude-nigeria-and-china-in-remaining-creditor-repayments-but-includes-payoneer/feed/ 0 41373 FTX to Deliver Up to 120% Creditor Payout in May 30 Second Distribution Wave https://earlybirdsinvest.com/ftx-to-deliver-up-to-120-creditor-payout-in-may-30-second-distribution-wave/ https://earlybirdsinvest.com/ftx-to-deliver-up-to-120-creditor-payout-in-may-30-second-distribution-wave/#respond Thu, 15 May 2025 19:01:18 +0000 https://earlybirdsinvest.com/ftx-to-deliver-up-to-120-creditor-payout-in-may-30-second-distribution-wave/

FTX Trading Ltd. and the FTX Recovery Trust announced today that distributions under the FTX Chapter 11 Plan of Reorganization will resume on May 30, 2025.

The forthcoming round, known as the Second Distribution, will be made to eligible creditors in the Convenience and Non-Convenience Classes who have completed all required steps, including KYC verification, tax form submission, and onboarding with one of FTX’s designated Distribution Service Providers—BitGo or Kraken.

Details of the Second Distribution

According to FTX, eligible creditors should expect to receive funds from their chosen service provider within one to three business days following May 30.

The process marks the first non-convenience class distribution under the plan and is guided by the waterfall structure defined in the reorganization blueprint.

Specifically, Dotcom Customer Entitlement Claims (Class 5A) will receive a 72% distribution, U.S. Customer Entitlement Claims (Class 5B) will receive a 54% distribution, General Unsecured Claims (Class 6A) and Digital Asset Loan Claims (Class 6B) will both receive 61%, and Convenience Claims (Class 7) will be paid out at 120%.

Plan Administrator John J. Ray III noted, “These first non-convenience class distributions are an important milestone for FTX.”

“The scope and magnitude of the FTX creditor base make this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals,” he added.

Key Requirements and Next Steps

FTX has also reiterated that customers must complete several steps before becoming eligible for any current or future distributions.

This includes logging into the FTX Customer Portal, completing KYC procedures, submitting necessary tax documentation, and onboarding with either BitGo or Kraken.

Customers who have opted for these service providers have effectively chosen to forgo direct cash distributions from FTX and instead receive payment through their selected provider. Any inquiries regarding fund availability should be directed to the provider’s customer support team.

As the process unfolds, FTX said it will continue to announce future record and payment dates. For transferred claims, only the transferee officially listed on the claims register will receive distributions, provided the 21-day notice period has passed without objection.

FTX Executives Sentenced: Where Are They Now?

FTX, once a dominant force in the crypto exchange space, collapsed in November 2022 after facing a severe liquidity crisis. Within days, the company filed for bankruptcy, and its CEO, Sam Bankman-Fried (SBF), stepped down. He was later convicted and sentenced to 25 years in prison.

Among those affected was investor Kavuri, who claimed to have endured two years of financial distress after losing over $2 million in FTX’s downfall.

Legal proceedings against four other former FTX and Alameda Research executives wrapped up by the end of 2024. This led to Caroline Ellison and Ryan Salame receiving prison sentences, while Nishad Singh and Gary Wang were given time served.

FTX’s restructuring plan, approved in October 2024, prioritized repayments to users with claims under $50,000. Around 98% of affected users will receive 119% of their declared funds.

The post FTX to Deliver Up to 120% Creditor Payout in May 30 Second Distribution Wave appeared first on Cryptonews.

]]> https://earlybirdsinvest.com/ftx-to-deliver-up-to-120-creditor-payout-in-may-30-second-distribution-wave/feed/ 0 36425 Court Approves 3AC’s $1.53B Claim Against FTX, Setting Up Major Creditor Battle https://earlybirdsinvest.com/court-approves-3acs-1-53b-claim-against-ftx-setting-up-major-creditor-battle/ https://earlybirdsinvest.com/court-approves-3acs-1-53b-claim-against-ftx-setting-up-major-creditor-battle/#respond Fri, 14 Mar 2025 17:37:01 +0000 https://earlybirdsinvest.com/court-approves-3acs-1-53b-claim-against-ftx-setting-up-major-creditor-battle/

The Delaware bankruptcy court handling the FTX estate approved a petition on Thursday from Three Arrows Capital (3AC) to significantly expand its claim against the estate from $120 million to $1.53 billion, marking a major development in the ongoing fallout from the collapse of Sam Bankman-Fried’s crypto empire.

3AC, once a dominant crypto hedge fund with over $3 billion in reported net assets, collapsed in 2022 while it still had deep financial ties to FTX, Sam Bankman-Fried’s soon-to-collapse crypto exchange. The hedge fund initially filed a proof of claim worth $120 million against FTX in July 2023 — adding its name to a long list of users and investors in FTX who lost money as a result of its sudden insolvency.

In November 2024, 3AC’s liquidators amended their claim after discovering new evidence suggesting that FTX had liquidated $1.53 billion in 3AC’s assets just two weeks before the hedge fund commenced its own liquidation proceedings two years prior. They argued that FTX’s liquidation of 3AC’s funds was carried out to satisfy a $1.3 billion liability to FTX, an obligation that 3AC claimed was not sufficiently substantiated.

FTX’s bankruptcy said the $1.3 billion liability represented collateral for a loan FTX made to 3AC, but the court ruled in favor of 3AC, finding insufficient evidence to support FTX’s loan claim.

The ruling allows 3AC to pursue a significantly larger portion of FTX’s remaining assets, potentially reshaping creditor payouts.

FTX, which began distributing funds to creditors in February 2025, said the expanded claim should have come sooner, arguing that it would burden other creditors and complicate its reorganization plan. The court, however, determined that 3AC’s delay was justified, given that the liquidators only uncovered the full extent of their claim in mid-2024 due to missing financial records from FTX and a lack of cooperation from 3AC’s founders, Zhu Su and Kyle Davies.

3AC, founded in 2012, had grown into one of the most influential financial firms in the cryptocurrency industry by 2022. Its collapse was among the first and largest dominoes to fall before the broader crypto market imploded in 2022, which ultimately set off the chain of events that revealed fraud in Sam Bankman-Fried’s crypto empire.

Bankman-Fried is currently pursuing an appeal of his criminal conviction and 25-year prison sentence. Following the collapse of 3AC, Su was detained in Singapore and sentenced to four months in prison for failing to cooperate with 3AC’s liquidators. Davies did not face any charges connected to the hedge fund’s collapse.

The 3AC founders reunited in 2023 to launch a short-lived crypto exchange called OPNX — designed to allow users to trade bankruptcy claims of failed crypto companies — which shut down in February.

With the court’s decision, 3AC’s liquidators now have a significantly larger position in the FTX. bankruptcy proceedings, raising questions about how the expanded claim will impact distributions to other creditors. The ruling also underscores the lack of transparency at both FTX and 3AC — further complicating efforts to untangle both firms’ assets and obligations.

]]> https://earlybirdsinvest.com/court-approves-3acs-1-53b-claim-against-ftx-setting-up-major-creditor-battle/feed/ 0 25133 Kraken to start second phase of FTX creditor repayments in May https://earlybirdsinvest.com/kraken-to-start-second-phase-of-ftx-creditor-repayments-in-may/ https://earlybirdsinvest.com/kraken-to-start-second-phase-of-ftx-creditor-repayments-in-may/#respond Thu, 06 Mar 2025 13:06:38 +0000 https://earlybirdsinvest.com/kraken-to-start-second-phase-of-ftx-creditor-repayments-in-may/

Kraken reportedly confirmed that the second phase of FTX creditor repayments will start on May 30.

On March 6, FTX creditors’ representative Sunil Kavuri shared a screenshot of an email allegedly from Kraken. The email indicated that the exchange would initiate another round of repayments in May for customers affected by FTX’s 2022 collapse.

According to Kavuri, this phase will cover claims below and above $50,000.

As of press time, Kraken has not responded to CryptoSlate’s request for comment.

However, the timeline aligns with an earlier statement from the defunct FTX exchange, which announced that the next distribution would begin in May.

Meanwhile, this round of repayments follows the first phase, which started on Feb. 18. That initial distribution covered FTX customers with claims worth $50,000 or less. At the time, blockchain analytics platform Arkham Intelligence reported that around $1.2 billion in assets had been withdrawn from FTX-controlled wallets.

The upcoming repayment phase will expand eligibility, allowing larger investors to receive funds.

However, creditors in several countries—including China, Russia, Egypt, Nigeria, and Ukraine—have yet to receive any compensation. While these regions represent a significant portion of FTX’s user base, they were excluded from previous distributions.

Kavuri stated that FTX is exploring ways to resolve these issues, but it remains uncertain whether affected users will receive payments in the next round.

FTX unstakes Solana

As repayment plans progress, FTX has unstaked a large amount of its Solana (SOL) tokens this month.

On March 3, blockchain analytics firm Spot On Chain reported that FTX and its affiliate Alameda Research unlocked 3.03 million SOL—valued at approximately $432.5 million—and moved the tokens across multiple wallets.

The firm noted that this marks the largest unstaking event for FTX/Alameda since November 2023. The move appears to be part of a broader plan to unlock 11.2 million SOL, worth roughly $1.5 billion, scheduled for early March.

Since November 2023, FTX/Alameda has unstaked and liquidated 7.83 million SOL, worth around $986 million, through Coinbase and Binance. The average sale price for these transactions was $125.80 per token.

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