FTX Will Hand Out Over $5 Billion in Bankruptcy Repayments This Month
FTX creditors will receive over $5 billion from the bankrupt exchange's estate starting May 30, as part of the second phase of the recovery plan. Four creditor groups will receive distributions ranging from 54% to 102% of their holdings at the time of FTX's collapse in November 2022. Class 5 creditors, including lenders and trading partners, will receive 54% to 72% of their claims, while victims with small unsecured claims will get 61%. Inter-company claims will be paid at 120%. BitGo and Kraken will distribute funds within one to three business days post-May 30. The recovery process follows a significant shift in the crypto landscape, with U.S. regulators approving spot Ethereum and Bitcoin ETFs and easing investigations into crypto firms. The initial phase of the recovery plan, which began in February, disbursed over $1 billion to creditors with claims under $50,000. The upcoming phase will address the remaining less than 10% of creditors yet to receive payouts.
