FTX to Launch Multi-Billion Dollar Creditor Repayments as Crypto Sentiment Turns Positive
FTX will begin issuing over $5 billion in creditor repayments on May 30, signaling a pivotal moment in the collapsed exchange’s bankruptcy process, the FTX Recovery Trust announced Thursday.
The upcoming distribution is part of the second phase of FTX’s court-approved recovery plan and will cover four categories of creditors, with recovery rates ranging from 54% to 120% based on claim values at the time of the platform’s failure in November 2022.
Crypto custodians BitGo and Kraken are coordinating the transfers, which are expected to reach eligible recipients within one to three business days after the May 30 start.
Breakdown of distributions:
- Alameda Research-related creditors (Class 5) will receive between 54% and 72%.
- Small unsecured claimants are expected to recover approximately 61%.
- Intercompany claims between FTX’s various subsidiaries will be repaid in full at 120%.
According to the Trust, more than 90% of approved claims have already been processed for payout, marking major progress in resolving the fallout from one of crypto’s most notorious collapses.
The repayments come at a time when sentiment in digital asset markets is improving and U.S. regulators are showing signs of increased openness toward the industry—a stark contrast to the climate during FTX’s downfall.
