FTX is facing a large number of fraudulent claims from major creditors, and the review process is causing slow progress in settlement
The cryptocurrency exchange FTX, once helmed by Sam Bankman-Fried, plans to start repaying its main creditors at the end of May. The company will distribute funds to thousands of businesses affected by bankruptcy in 2022 (including institutional investors and companies holding cryptocurrencies on the FTX platform) and retail investors, with the first payment to major creditors scheduled for May 30th. However, according to bankruptcy lawyer Andrew Dietderich, there are a large number of duplicates among the claims received so far and some outright frauds, which has slowed down the liquidation work on FTX's balance sheet.
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