Australian Dollar Withdrawal Requests
A recent ruling by the Victorian Supreme Court has given hope to Australian creditors of the crypto exchange FTX, as it increases the chances of them recovering their funds. The ruling clarifies that only those who made Australian dollar withdrawal requests, amounting to about 747 investors, are eligible for full reimbursement. The $26 million collected by Korda Mentha, the advisory and investment firm, is reportedly enough to repay all 747 investors.
However, Australian investors who made crypto-to-crypto withdrawal requests will have to wait for the completion of bankruptcy proceedings in the U.S. This means they will have to wait longer to recover their funds. FTX lawyer, Andrew Dietderich, remains hopeful that all creditors will eventually be reimbursed, despite the challenges ahead.
Calculation Based on Bankruptcy Filing Prices
The FTX creditor committee lawyer, Kris Hansen, emphasized that reimbursement calculations will be based on the cryptocurrency prices prevailing at the time of the bankruptcy filing. This decision means that the surge in the value of cryptocurrencies like bitcoin (BTC) and Solana (SOL) will not directly translate into higher payouts for creditors. Some creditors may be disappointed by this stance, but a U.S. judge has approved FTX’s reimbursement proposal as legal and fair.
Hot Take: Australian Creditors of FTX Nearing Full Reimbursement
The recent ruling by the Victorian Supreme Court has brightened the prospects for Australian creditors of FTX, allowing them to recover their funds. With $26 million in funds collected by Korda Mentha, the reimbursement process can proceed, benefiting the 747 investors who made Australian dollar withdrawal requests. However, for those who made crypto-to-crypto withdrawal requests, the process will be delayed until the completion of U.S. bankruptcy proceedings. Despite the challenges, there is optimism that all creditors will eventually be made whole. The calculation of reimbursements based on the bankruptcy filing prices puts the focus on the time of filing rather than the recent surge in cryptocurrency values, ensuring fairness in the distribution of funds.
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