First Zeek Rewards payments to go out September 30th
On the 28th of May, the Zeek Rewards Receivership filed a Motion to “authorize first interim distribution” of payments to Zeek Rewards victims.
The Motion is specifically limited to payments being made under what the Receivership refers to as “Class 3” claims, which the Receivership defines as
the Claims of Affiliate Investors and subrogees of Affiliate Investors on account of losses based on the investments they made in the ZeekRewards Scheme.
As I understand it, if you lost money in Zeek Rewards and there was no disputes or discrepancies over the amount, your claim is classified as a Class 3.
Payments will naturally vary from affiliate to affiliate, but these first payments are claimed to guarantee a payout of ‘at least 40% of the amount of their Class 3 Allowed Claim‘.
Note that this isn’t a definitive payout, with expected payments to be made at a later date. The Receivership does note however that a 100% recovery is “unlikely”:
The Receiver anticipates that future recoveries will allow for further distributions to holders of Class 3 Allowed Claims, but it remains unlikely that there will be sufficient funds to pay all Allowed Claims in full.
For those curious as to how many claims fall under Class 3,
As of the date of this Motion, approximately 150,000 Claim Determinations have been issued by the Receivership Team for Claims in Class 3.
Around 175,000 claims in total were submitted to the Receivership, with 25,000 still under review.
500 of the 150,000 Class 3 claims (0.003%) were initially objected to, with those claims having either been since resolved or still under review.
Note that not all of the 150,000 claims will be receiving payouts at this stage. Thus far only
83,000 have provided the required Release and OFAC Certification. These 83,000 Allowed Claims represent the aggregate sum of approximately $305 million paid into the ZeekRewards Scheme.
The other 67,000 Class 3 Claimants that have not provided Releases and OFAC Certifications paid approximately $157 million into the ZeekRewards Scheme.
These Class 3 Claims will become Allowed Claims if the Class 3 Claimants that hold those Claims agree to the Claim Determination, or fail to timely object, and submit the required Release and OFAC Certification.
If you’ve come this far as a Zeek Rewards victim, it would appear to be rather silly to miss out on your payment because you failed to file the required forms.
To that end the Zeek Receivership requested the date August 15th be set as the “First Interim Distribution Record Date”. This date is the final date for the 67,000 claimants who have yet not provided the Receivership with the required documentation to do so.
If you miss this date your claim will not be part of the initial run of payouts.
September 30th has then been proposed as the date the Receivership will send out checks to Class 3 Claimants with approved claims.
If an affiliate misses the August 15th deadline to provide the release and OFAC certification, after September they then have until December 31st to provide these forms.
Judge Mullen granted the Receivership’s order on the day it was filed, so for those of you with approved claims, expect those 40% or more checks in the mail come September.
To those of you who haven’t yet provided the required documentation, get cracking!
Footnote: Our thanks to Don @ ASDUpdates for providing the latest Receivership filings.