FTX estate to start distributing more than $5B on May 30
FTX is initiating repayments to users after more than two-and-a-half years post-bankruptcy. Starting May 30, the FTX Recovery Trust will distribute over $5 billion to creditors through BitGo and Kraken, with funds expected within 1 to 3 business days. The reorganization plan includes five groups of “convenience classes” receiving between 54% and 120% of asset distributions. The repayment schedule for the next class will be announced later, with potential total payments reaching up to $16 billion. The first reimbursement round began on February 18, totaling approximately $1.2 billion. Criticism exists regarding the plan's reliance on cryptocurrency prices at the time of bankruptcy. Currently, 98% of creditors are projected to receive at least 118% of their initial claims in cash. Former CEO Sam Bankman-Fried was sentenced to 25 years for misusing customer funds, while other executives received various sentences. Michelle Bond faces campaign finance charges despite not being directly involved with FTX.
