Aftermath of the FTX Collapse

ChainCatcher news, according to Bloomberg, Zhao Changpeng has requested the U.S. Bankruptcy Court in Delaware to dismiss the $1.76 billion recovery claim lawsuit filed against him by the FTX trust. The trust claims that the funds were improperly transferred to Binance by SBF (Sam Bankman-Fried).In a motion submitted on Monday, Zhao stated that he is a resident of the UAE and that the trust cannot prove its jurisdiction in Delaware. He emphasized that the related claims have little connection to the U.S., and the applicable laws have no extraterritorial applicability.Previously, the trust and FTX Digital Markets sued Binance and several executives over a share buyback agreement with SBF from July 2021. In July of this year, two former Binance executives applied to be removed from the lawsuit. Zhao claimed that he was merely a "nominal counterparty" in the transaction, accusing FTX of "unreasonably" blaming Binance for its bankruptcy.He also pointed out that serving U.S. lawyers to foreign defendants is improper and would render the complaint invalid. Zhao further stated that U.S. bankruptcy law does not explicitly apply to foreign fund transfers.

ChainCatcher news, according to a press release, FTX announced that for the holders of the approved 5 categories of customer equity claims and 6 categories of general unsecured claims (as defined in the plan), as well as the convenience claims that have been approved but not yet allocated since the previous record date, the next distribution record date is expected to be August 15, 2025, with the next distribution expected to begin around September 30, 2025. The next distribution will be conducted by FTX's distribution service providers BitGo, Kraken, and Payoneer.FTX also announced that it has obtained authorization from the bankruptcy court to reduce the disputed claims reserve by $1.9 billion, from $6.5 billion to $4.3 billion, with the released cash to be distributed to the holders of allowed claims in the next distribution.

ChainCatcher news, according to Cointelegraph, the FTX liquidation team has submitted a request for an extension to the Delaware court, seeking more time to respond to over 90 creditor objections raised against its plan to freeze a $470 million multinational payment scheme. The plan intends to designate 49 jurisdictions, including China, as "restricted areas," suspending compensation payments to relevant creditors.FTX stated that this move aims to avoid potential legal risks, especially the criminal liabilities that executives may face. Currently, claims from Chinese creditors account for 82% (approximately $380 million) of the total. However, the plan has faced strong opposition, with Chinese creditor representative Weiwei Ji stating that hundreds of investors have organized to collectively defend their rights. Another creditor, Sunil Kavuri, revealed that approximately $1.4 billion in claims remain unresolved. A related hearing will be held this Tuesday.

This unresolved debt collection may tear apart the last fig leaf of compliance.

ChainCatcher message, FTX creditor representative Sunil updated the FTX claim distribution information on the X platform, with the total amount of claims in restricted jurisdictions being $470 million. China is the largest holder of FTX claims, with $380 million in claims (accounting for 82% of restricted claims).Claims with incomplete KYC (Bahamas) amount to $290 million, the total amount of disputed claims is $660 million, the total amount awaiting claim resolution is $1.4 billion, and the total amount expected to be allowed for claims is $11 billion.

ChainCatcher news, FTX creditor representative Sunil stated on social media, "FTX creditors have received distribution payments from FTX in their Kraken accounts."ChainCatcher previously reported that FTX announced on the X platform that it has launched the second phase of the user repayment program, expecting to distribute over $5 billion to creditors, who will receive the funds within 1 to 3 business days starting today.

ChainCatcher message, FTX creditor representative Sunil posted on the X platform stating that Kraken has issued a fund distribution notice to FTX creditor clients, with the fund distribution date for FTX US creditors set for May 30, 2025 (total debt amount: $312 million), and for FTX international creditors on June 2, 2025.Previously reported, FTX has announced the launch of the second phase of the user repayment program, expecting to distribute over $5 billion to creditors, who will receive the funds within 1 to 3 business days.

ChainCatcher news, according to DL News, FTX announced that approximately $2.5 billion in customer claims have been canceled due to nearly 400,000 users not completing identity verification (KYC) by March 3. According to documents from the Delaware bankruptcy court dated April 2, 392,000 claims have been completely dismissed and removed, involving up to 2,377 pages.Although the initial estimate of unverified claims was about $1 billion, creditor representative Sunil Kavuri stated that the actual amount could exceed $2.5 billion, which includes $655 million in small claims and $1.9 billion in large claims.These canceled claims are part of the total $33.6 billion in disputed claims that FTX expects to reject. FTX stated that this process is crucial for addressing the failures of the previous management in user data collection and due diligence.

ChainCatcher news, FTX creditor representative Sunil posted on social media that Kraken has begun sending emails to FTX users, confirming that the next round of FTX payout distribution is scheduled for May 30, 2025. This distribution covers claims both below and above $50,000.

The massive circulation expectations of SOL have raised market concerns, and the aftermath of FTX's asset sell-off will once again impact the crypto ecosystem. Is it an excessive spread of panic, or are the risks not fully priced in yet?