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FTX Begins $5 Billion Repayment — Some Creditors Get More Than They Lost
The crypto-recovery saga continues as FTX prepares to distribute over $5 billion to creditors starting May 30, 2025. This second round of payments marks a significant milestone in the exchange’s bankruptcy proceedings, offering financial relief to thousands affected by the platform’s dramatic collapse in November 2022.
The distribution process requires creditors to complete pre-distribution requirements through approved platforms like BitGo or Kraken. Once these steps are finished, funds should reach creditors within one to three business days. Different classes of creditors will receive varying percentages of their claims, with some fortunate enough to receive between 54% and 120% of what they lost. It’s like finding extra fries at the bottom of your takeout bag—unexpected but welcome. Unlike typical rug pull scenarios where developers vanish with funds, FTX’s bankruptcy proceedings provide a structured path for creditor recovery.
The repayment structure follows U.S. bankruptcy law principles, calculating amounts based on asset values at the time of FTX’s bankruptcy filing. This means creditors won’t benefit from crypto’s price appreciation since then. If someone held Bitcoin worth $16,000 in November 2022, they’ll receive payment based on that value, not today’s higher prices. It’s a classic case of “you win some, you lose some” in crypto land.
Creditors receive November 2022 values, missing out on crypto’s subsequent price surge—a bittersweet recovery twist.
FTX’s recovery efforts have been remarkably successful. The exchange reported having approximately $12.6 billion in assets as of June 2024, with potential growth to $16.5 billion through ongoing asset sales and litigation against firms that owe money. The recovery process has been overseen by Sullivan & Cromwell, the law firm representing FTX Recovery Trust, along with other advisors. These recovery efforts demonstrate that even in crypto’s wild west, traditional bankruptcy processes can work effectively.
The repayment represents more than just numbers on a spreadsheet. It provides genuine financial relief to creditors who’ve waited years for resolution. While some might grumble about missing out on crypto gains, others celebrate getting more than they initially lost. John J. Ray III, the plan administrator, has described the distribution process as unprecedented in its scale and coordination.
The distribution also helps restore confidence in the crypto market, showing that even failed exchanges can fulfill their obligations through proper legal channels.
Additional distributions will follow, with specific record and payment dates to be announced. For now, creditors who’ve completed their requirements can prepare for incoming payments, marking the end of a long and uncertain chapter in crypto history.
