21-5-2025 – The defunct digital assets exchange FTX is poised to disburse more than $5 billion to its creditors, marking a pivotal chapter in one of finance’s most dramatic collapses.
The FTX Recovery Trust revealed on Thursday that distributions would commence from 30 May, heralding the second stage of an intricate repayment scheme that has drawn global attention.
The settlement architecture encompasses four distinct creditor classifications, with recompense rates varying dramatically. Remarkably, some claimants are set to receive up to 120% of their original holdings’ value, calculated from the exchange’s November 2022 implosion.
Smaller unsecured creditors will receive approximately 61% of their claims, whilst inter-company obligations will be honoured at the maximum 120% rate. The comprehensive framework extends to encompass lenders, trading associates, and various vendors who were caught in the exchange’s downfall.
John J. Ray III, who oversees the FTX Recovery Trust as plan administrator, characterised the distribution as a “remarkable achievement”, highlighting the unprecedented intricacy of the rehabilitation process.
The mechanics of the distribution will be orchestrated by cryptocurrency custodians BitGo and Kraken, with transfers expected to materialise within 72 hours of the late May commencement date.
This substantial creditor reimbursement unfolds against a backdrop of shifting American cryptocurrency policy. The regulatory landscape has witnessed notable transformations, including the landmark approvals of spot Ethereum and Bitcoin ETFs, alongside a generally more accommodating stance towards digital asset enterprises.
The current phase follows February’s initial distribution, which saw more than $1 billion returned to creditors with claims below $50,000. This latest round targets the remaining cohort of creditors who have yet to receive compensation from the estate.
