{"id":21115,"date":"2025-05-16T05:25:35","date_gmt":"2025-05-16T05:25:35","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2025\/05\/16\/ftx-to-distribute-over-5-billion-to-creditors-in-second-phase-of-bankruptcy-repayments\/"},"modified":"2025-05-16T05:25:35","modified_gmt":"2025-05-16T05:25:35","slug":"ftx-to-distribute-over-5-billion-to-creditors-in-second-phase-of-bankruptcy-repayments","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2025\/05\/16\/ftx-to-distribute-over-5-billion-to-creditors-in-second-phase-of-bankruptcy-repayments\/","title":{"rendered":"FTX to Distribute Over $5 Billion to Creditors in Second Phase of Bankruptcy Repayments"},"content":{"rendered":"

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FTX, the collapsed cryptocurrency exchange, is set to distribute over $5 billion to creditors starting May 30, 2025, as part of its Chapter 11 bankruptcy plan. This second phase of repayments follows a $1.2 billion initial distribution and aims to return funds to users affected by the exchange\u2019s 2022 collapse, with some creditors receiving up to 120% of their claims.<\/span><\/p>\n

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(1\/3) FTX today announced it is set to distribute more than $5 billion in its Second Distribution to holders of allowed claims in the Plan\u2019s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements on May 30, 2025.<\/p>\n

\u2014 FTX (@FTX_Official) May 15, 2025<\/a><\/p>\n<\/blockquote>\n

A Major Milestone in FTX\u2019s Recovery Plan<\/strong><\/h2>\n

FTX, once a leading cryptocurrency exchange, will begin its second wave of creditor repayments on May 30, 2025, distributing over $5 billion in recovered funds. This follows the first phase in February 2025, which paid out $1.2 billion to creditors with claims under $50,000. The FTX Recovery Trust, led by plan administrator John J. Ray III, has described this as an \u201cunprecedented distribution process\u201d due to the scale and complexity of the creditor base.\u00a0<\/span><\/p>\n

The bankruptcy estate has recovered between $14.7 billion and $16.5 billion, enough to repay 98% of creditors at least 118% of their claim values as of November 2022, when FTX filed for bankruptcy.<\/span><\/p>\n

The repayments will be facilitated by crypto platforms BitGo and Kraken, with funds expected to reach eligible creditors within one to three business days. Four creditor groups will receive distributions, with payouts ranging from 54% to 120% of their holdings\u2019 value at the time of FTX\u2019s collapse.<\/span><\/p>\n