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.
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🚨 FTX TO DISTRIBUTE $5B TO CREDITORS ON MAY 30 FTX 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
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.
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