FTX to Pay Over $5B to Creditors as Bankrupt Exchange Gears Up for Distribution

FTX creditors are set to receive over $5 billion in distributions starting May 30, as part of the second phase of the bankrupt exchange’s court-approved recovery plan, the FTX Recovery Trust said Thursday.

The estate will hisse out to four classes of creditors, with recoveries ranging from 54% to 120% of their original claims. The amounts are based on the U.S. dollar value of customer holdings at the time of FTX’s collapse in November 2022.

BitGo and Kraken, two custodians overseeing the distribution process, are expected to transfer funds to eligible claimants within one to three business days from May 30.

The payout breakdown includes “Class 5” creditors, or Alameda Research counterparties, lenders, and trading vendors, who are set to receive between 54% and 72% of approved claims.

Small, unsecured claimants are recovering about 61%. Meanwhile, intercompany claims involving FTX’s various subsidiaries are being repaid at 120%.

Over 90% of all claims have entered the distribution pipeline, the Repayment Trust said in its release.