- FTX plans to pay over $5 billion to creditors starting May 30.
- Creditors with claims over $50,000 receive 72.5% upfront.
- Total $9.7 billion distributed by FTX Recovery Trust by May 2025.
FTX Recovery Trust is set to begin its second major repayment on May 30, 2025, distributing over $5 billion to creditors.
This second repayment cycle, involving significant bankruptcy recovery, affects major cryptocurrencies and creditor portfolios.
FTX to Distribute $5 Billion in Second Repayment Cycle
FTX Recovery Trust will distribute over $5 billion to creditors on May 30, 2025. Involved parties include FTX Recovery Trust and custodians Kraken and BitGo, responsible for ensuring efficient and secure fund release. This follows an initial $4.7 billion distribution in March 2025.
Impacts include reimbursement of 72.5% now for claims over $50,000. Further payments and accrued interest are planned to follow in future rounds. This structure indicates a cautious approach to distributing recovered assets.
“FTX Recovery Trust to Distribute More than $5 Billion to Creditors in Second Distribution on May 30, 2025.” — FTX Recovery Trust, Official Statement
The crypto community is engaged in debate, notably regarding the valuation date of November 2022 which means creditors miss market recovery benefits. No statements from John J. Ray III have been released, but official court and press releases are the main updates.
Historical Parallels and Market Insight on FTX Payouts
Did you know? FTX Recovery Trust’s creditor reimbursement structure echoes past bankruptcy cases like Mt. Gox, emphasizing a conservative asset valuation approach.
Bitcoin (BTC) currently trades at $106,811.52, with a market cap of 2,122,082,799,250.29 and 63.18% market dominance. The 24-hour trading volume is down 10.97% to 54,336,695,446.78 with BTC seeing a 1.06% price increase over the past day. Data sourced from CoinMarketCap.
The Coincu research team notes potential regulatory changes, as FTX’s approach aligns with traditional asset valuation periods, focusing on creditor priority and market stabilization. This could guide future insolvency procedures within the rapidly evolving crypto industry. Access more insights on FTX’s approach.
Source: https://coincu.com/338786-ftx-billion-creditor-repayment-may-30/