EddieJayonCrypto
16 May 25
FTX creditors will receive over $5 billion from the bankrupt crypto exchange's estate in a distribution set for May 30. Four creditor groups will get payments ranging from 54% to 102% of their FTX holdings' value at the time of the exchange's collapse in November 2022. This marks the second phase of...
FTX creditors are set to receive over $5 billion in the upcoming distribution phase scheduled for May 30, marking a significant milestone in the bankruptcy recovery process.Four distinct groups of creditors—including lenders, trading partners, and small unsecured claimants—will obtain payments ranging from 54% to 102% of their original holdings at the time of FTX's collapse in November 2022.Specifically, Class 5 creditors such as lenders and trading partners can expect payouts between 54% and 72%, small unsecured claimants will receive about 61%, and inter-company interest claims will be compensated at 120% of their claims.These funds will be disbursed by BitGo and Kraken within one to three business days following May 30, continuing the phased approach of the FTX Recovery Trust's asset restitution plan.The distribution highlights the unprecedented scale of the FTX recovery effort, as explained by plan administrator John J. Ray III, who emphasized the complexity due to the sheer number of affected creditors.This phase follows an initial payout earlier this year, which saw creditors with claims under $50,000 receive over $1 billion combined.The broader context sees FTX's collapse fading from the public spotlight amid a notable regulatory shift in the United States under President Trump, where pro-crypto policies and eased regulatory actions have taken center stage.Since the collapse, the SEC has greenlit spot Ethereum and Bitcoin ETFs and concluded many investigations into crypto companies, contributing to an industry overhaul and increased market demand for crypto exchange-traded products.Overall, this next round of distributions aims to compensate remaining creditors who have not yet received payments, further advancing the complex journey of recovering assets from one of crypto's most notable bankruptcies.