FTX allegedly to allow bankruptcy payouts via BitGo, Kraken

(Source: baha news)
UNSPLASH.COM/MARIIA SHALABAIEVA

The collapsed cryptocurrency exchange FTX Trading Ltd. will allow its bankruptcy payouts in stablecoins via once-rivals BitGo Inc. and Payward Inc.'s Kraken's services, Claims Portal reported on Monday.

The report came after United States Bankruptcy Court Chief Judge John Dorsey approved FTX's plan, which was created after the company filed for Chapter 11 bankruptcy. The strategy stipulates $16 billion to repay customers and creditors within 60 days after it comes into force. The company will then settle the bill with the authorities.

Meanwhile, FTX's acting Chief Executive Officer (CEO) John Ray III selected BitGo as the official custodian to safeguard the company's remaining assets, which has to be approved in a hearing.

Baha Breaking News (BBN) / JR