$11.4B Payouts to FTX Creditors Scheduled for May as Bankruptcy Process Nears End

FTX Sets May 30 for Launch of $11.4B Creditor Repayment Plan

After years of legal wrangling, FTX is preparing to begin reimbursing its major creditors starting May 30, marking a pivotal moment in one of crypto’s largest bankruptcies.

The defunct exchange, which collapsed under the leadership of Sam Bankman-Fried in 2022, has accumulated $11.4 billion in cash for distribution, according to recent court updates in Delaware. The initial round of payouts will be directed toward larger claimants, including institutional clients and firms with substantial holdings on the platform.

Retail users with claims below $50,000 have reportedly begun to receive smaller disbursements, as part of FTX’s effort to prioritize less complex cases.

Since FTX’s implosion, bitcoin and other cryptocurrencies have surged, leaving many creditors frustrated at being reimbursed in fiat rather than crypto. With BTC now trading at more than four times its value during the bankruptcy filing, some users argue that the real value of their claims has diminished significantly.

The process of validating claims has proven arduous, as FTX’s legal team disclosed the submission of “27 quintillion” in alleged claims—many of which are believed to be either fraudulent or duplicated.

To make matters more urgent, interest on valid claims continues to accumulate at 9% annually, far outpacing the return FTX is earning on its current cash reserves. This growing gap has created pressure to complete payouts swiftly to avoid even steeper liabilities.

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