In a significant development for creditors, collapsed crypto exchange FTX has confirmed the launch of its second major payout phase, valued at more than $5 billion. The distribution, scheduled to begin on May 30, 2025, marks a new milestone in the company’s ongoing bankruptcy proceedings and its Chapter 11 reorganization plan.
This new round of repayments follows the initial $7 billion distribution that took place earlier this year, pushing total reimbursements to over $12 billion. The plan, which was approved by the U.S. bankruptcy court, aims to restore funds to a wide range of claimants who suffered losses after FTX’s dramatic collapse in late 2022.
The repayments will be facilitated through established crypto custodians Kraken and BitGo, who will manage fund disbursement to eligible creditors. According to the bankruptcy team overseeing the process, the recovery plan has been designed to ensure transparency, speed, and efficiency.
Who Gets What?
FTX estimates that eligible creditors will receive between 54% and 120% of their original claims, depending on a variety of factors, including the size and classification of the claim. However, there’s a catch, all repayments will be made in cash, not crypto. This means claimants will miss out on the significant appreciation of cryptocurrency prices that has occurred since the company’s collapse.
Notably, FTX has already fully repaid a category of claimants known as the “Convenience Class”– those with claims of $50,000 or less. These creditors not only received 100% of their eligible claims but also a 9% annual interest rate dating back to November 2022.
Total Recovery Could Hit $16.5 Billion
If the asset recovery process continues at its current pace, total clawbacks and asset sales could push the final recovered sum to $16.5 billion, a figure few expected when FTX first filed for bankruptcy. This makes the FTX restructuring one of the most substantial recoveries in crypto history, albeit still controversial.
Some critics argue that while the dollar amount sounds impressive, many retail users feel shortchanged by the fact that they are being reimbursed in fiat currency based on crypto prices from 2022. With assets like Bitcoin and Ethereum significantly appreciating since then, users who lost their holdings are not seeing the full benefit of the market’s recovery.
Looking Ahead
FTX’s bankruptcy saga has been a defining moment for the cryptocurrency industry, prompting major regulatory discussions and increased scrutiny on centralized exchanges. While the ongoing payouts offer a sense of closure for many victims, the decision to exclude crypto-based reimbursements continues to be a point of contention.
For now, FTX’s restructuring team is focused on completing this second phase of payouts and planning the final stages of asset liquidation and creditor reconciliation. Legal experts and crypto investors alike are closely watching to see whether the FTX saga sets a precedent for how future crypto bankruptcies might be handled.
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