This weekend, significant developments unfolded in the cryptocurrency sector, notably the announcement from FTX regarding its repayment strategy for major creditors, along with the pardons granted to former BitMEX leaders by President Trump.
FTX to Begin Paying Major Creditors in May 2025
FTX, once a leading cryptocurrency exchange helmed by Sam Bankman-Fried, has reached a pivotal juncture in its bankruptcy proceedings. Nearly two and a half years following its dramatic collapse, FTX has announced that it will commence payments to its major creditors on May 30, 2025.
The exchange has successfully accumulated $11.4 billion in assets designated for distribution to creditors holding claims in excess of $50,000. In contrast, smaller creditors with claims below $50,000 have already begun receiving their due payments, with most individuals compensated within two months of the repayment plan’s initiation.
FTX’s collapse was precipitated by shocking revelations concerning misappropriation of customer funds by Bankman-Fried to support his hedge fund, Alameda Research, leading to the company’s bankruptcy filing in November 2022. Notably, recovery efforts have been spearheaded by John J. Ray III, renowned for overseeing the dissolution of Enron.
Under Ray’s stewardship, FTX’s estate has managed to reclaim substantial assets, including stakes in technology firms and cryptocurrency holdings, amounting to more than the company’s original liabilities of $11.2 billion. Consequently, creditors are set to receive payouts projected to reach between 118-119% of their initial claims.
However, it is essential to note that the reimbursement calculations are based on the cryptocurrency valuations as of November 2022, leading to dissatisfaction among many creditors as Bitcoin and other digital assets have appreciated significantly since that date.
Arthur Hayes and BitMEX Leaders Pardoned by Trump
In a parallel dimension of the crypto landscape, Arthur Hayes, the former CEO of BitMEX, has recently been pardoned by US President Donald Trump. Alongside him, his co-founders, Samuel Reed and Benjamin Delo, along with senior employee Greg Dwyer, and HDR Global Trading, the operating entity of BitMEX, received clemency.
This grant of clemency comes after a tumultuous legal struggle initiated in 2020, when the US Department of Justice (DOJ) charged BitMEX’s leadership with violations of the Bank Secrecy Act (BSA). These charges were based on the platform’s failure to enforce basic customer identification measures, which allowed for anonymous trading, circumventing the required know-your-customer (KYC) protocols.
All involved parties entered guilty pleas and were given probationary sentences, while BitMEX itself resolved charges posthumously by admitting to BSA infractions last year.
Moreover, BitMEX encountered a significant sanction from the Commodity Futures Trading Commission (CFTC), which imposed a $100 million fine for breaches of the Commodity Exchange Act back in 2021.
This latest pardon accompanies previous clemencies granted by Trump, including that of Silk Road creator Ross Ulbricht. Meanwhile, Sam Bankman-Fried, the controversial founder of FTX, has made multiple attempts to secure a pardon, including attempts to sway Trump’s administration through interviews while incarcerated.
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