FTX to Pay Over $5B to Creditors as Bankrupt Estate Gears Up for Distribution

Payouts of up to 120% begin May 30 for thousands of creditors, just as U.S. regulators warm to crypto and the industry stages a comeback.

What to know:

FTX creditors will start receiving over $5 billion in distributions from May 30 as part of the exchange’s recovery plan.
Recoveries for creditors range from 54% to 120% of their original claims, based on the value at FTX’s collapse in November 2022.
BitGo and Kraken will handle the distribution, transferring funds within one to three business days from the start date.

FTX creditors are set to receive over $5 billion in distributions starting May 30, as part of the second phase of the bankrupt exchange’s court-approved recovery plan, the FTX Recovery Trust said Thursday.

The estate will pay out to four classes of creditors, with recoveries ranging from 54% to 120% of their original claims. The amounts are based on the U.S. dollar value of customer holdings at the time of FTX’s collapse in November 2022.

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BitGo and Kraken, two custodians overseeing the distribution process, are expected to transfer funds to eligible claimants within one to three business days from May 30.

The payout breakdown includes “Class 5” creditors, or Alameda Research counterparties, lenders, and trading vendors, who are set to receive between 54% and 72% of approved claims.

Small, unsecured claimants are recovering about 61%. Meanwhile, intercompany claims involving FTX’s various subsidiaries are being repaid at 120%.

Over 90% of all claims have entered the distribution pipeline, the Repayment Trust said in its release.

Payouts of up to 120% begin May 30 for thousands of creditors, just as U.S. regulators warm to crypto and the industry stages a comeback.

What to know:

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