Advisers managing the bankruptcy of FTX are preparing to
distribute $5 billion to the company’s creditors. This will be the second
payout this year. The first round began in mid-February.
In the February round, repayments
started with customers in the “Convenience Class.” These are individuals
with claims of $50,000 or less. They are receiving full repayment along with 9%
annual interest from November 2022. FTX distributed $7 billion in the first
phase. The new $5 billion distribution is scheduled to begin on May 30.
FTX Begins Second Creditor Payout
FTX said that customers and other creditors will receive
between 54% and 120% of what they are owed in this payout. The company said
payments will be made through either Bitgo or Kraken. These payments are being made under a Chapter 11 plan. The
plan was approved by a bankruptcy judge in Delaware last year.
You may find it interesting at FinanceMagnates.com: FTX
EU Customers’ Claims Are on the Way: New Owner Backpack Initiates Process.
🚨 FTX TO DISTRIBUTE $5B TO CREDITORS ON MAY 30FTX Recovery Trust will start giving out more than $5 billion to its remaining creditors on May 30, 2025.The payout will be managed through Kraken and BitGo. This is the second phase of FTX’s plan, approved by the court, to… pic.twitter.com/s0NJ1KmgJw
— Neel (Crypto Jargon) (@Crypto_Jargon) May 16, 2025
Asset Recovery Could Reach $16.5B
FTX filed for bankruptcy in November 2022. Customers will be
repaid what they were owed at that time. However, they are being repaid in cash
and will not benefit from the rise in cryptocurrency prices since the firm’s
collapse.
Last year, FTX held about $12.6 billion. This could increase
to $16.5 billion as advisers continue to recover and sell assets, according to
court filings. In April, FTX said it had launched legal action against token
and coin issuers that still owe money to the company.
This article was written by Tareq Sikder at www.financemagnates.com.
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