FTX to Disburse $11.4 Billion to Creditors Starting Late May
FTX is finally preparing to begin repayments to its largest creditors, with the first wave of distributions scheduled for May 30—nearly three years after the exchange’s dramatic collapse.
According to court proceedings held in Delaware last week, the failed crypto platform has amassed $11.4 billion in cash, ready to be allocated to thousands of affected parties. The initial round will go to major institutional investors and entities that had significant holdings on FTX.
Smaller creditors with claims under $50,000 have already started receiving their share, but the larger payments have been delayed by a tangled web of claims processing and legal hurdles.
The bankruptcy estate has struggled with verifying an overwhelming number of submitted claims—some legitimate, others clearly not. FTX’s legal team noted it received an absurd volume of claim filings—up to “27 quintillion,” a number bloated by duplicates and fraudulent submissions.
Meanwhile, many creditors continue to express frustration over being repaid in U.S. dollars instead of crypto assets. With the price of bitcoin having more than quadrupled since FTX’s collapse in 2022, some feel their effective recovery has been significantly diluted.
Adding to the urgency is the 9% annual interest owed to verified creditors—an amount steadily rising while FTX earns minimal returns on its idle cash reserves.
