FTX to Begin $5 Billion Creditor Repayment on May 30

By: financefeeds|2025/05/16 15:00:13

Collapsed cryptocurrency exchange FTX will begin distributing more than $5 billion to creditors starting May 30, 2025, as part of its second major repayment round under its Chapter 11 bankruptcy proceedings. This move comes nearly two and a half years after the exchange’s dramatic collapse in November 2022 and signals a substantial step forward in the ongoing process of compensating victims of one of the largest financial failures in digital asset history.According to court documents and statements from the FTX Recovery Trust, eligible creditors will receive payments via BitGo and Kraken, which were selected as the official distribution platforms. Funds are expected to be processed and delivered within one to three business days following the distribution date, assuming recipients have met all compliance requirements.Repayment Calculations Tied to 2022 Asset ValuationsWhile the $5 billion figure marks a significant distribution, payouts are being calculated based on asset values from the date of bankruptcy filing in late 2022. This has generated frustration among some creditors, as many cryptocurrencies have substantially appreciated in value since that time. Legal experts note that using the 2022 valuations aligns with standard U.S. bankruptcy code, which typically locks asset pricing at the time of filing to ensure uniformity in repayment.Creditors are being grouped into specific claim classes, each with its own repayment percentage:Class 5A (Dotcom Customer Entitlement Claims): 72%Class 5B (U.S. Customer Entitlement Claims): 54%Classes 6A & 6B (General Unsecured and Digital Asset Loan Claims): 61%Class 7 (Convenience Claims): 120%These categories reflect the complexity of claims stemming from FTX’s global operations, which served both retail and institutional clients across multiple jurisdictions.KYC Compliance Required Ahead of DisbursementTo receive payments, creditors must complete Know Your Customer (KYC) verification and submit any necessary tax documentation. Failure to meet these obligations by the designated deadline may result in disqualification from this distribution round. The FTX Recovery Trust has urged all eligible claimants to act promptly to avoid missing out.This marks the second major distribution following a $1.2 billion payout in February 2025, which primarily targeted smaller, convenience-class claims. According to FTX Recovery Trust Plan Administrator John J. Ray III, the latest payout represents a “crucial milestone” in the company’s recovery roadmap.Further distributions are anticipated later in 2025 as additional assets are recovered and outstanding legal claims are resolved. Stakeholders remain hopeful that continued progress will increase total recovery percentages and bring greater closure to one of crypto’s darkest chapters.

The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...

Who is footing the bill for the $64 billion accounting frenzy?

Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.

Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion

Overview of Important Market Events on June 25

Why do cryptocurrency projects always like to change their names?

In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.

From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework

Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.

Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies

Overview of Important Market Events on June 24

The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough

The awareness level of the audience in the cryptocurrency industry—including media, institutions, and retail investors—is steadily increasing, and this trend has become a foregone conclusion.

Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends

The Ethereum Foundation has announced a new five-layer working framework, clarifying the focus of future development and reaffirming its commitment to decentralized core values amidst the wave of institutionalization.

Former SpaceX engineer reconstructs the financial execution system using first principles

Plan Execution Lab completes angel round financing for Singapore family office, with a valuation of 50 million USD.

Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD

The throne of DeFi lending still exists, but the foundation beneath the throne needs to undergo a reconstruction or reinforcement.

Tidal Investment: We still have a positive outlook on the AI industry chain, but the reasons have changed

The intense financing by tech giants has triggered a panic of "AI peak," but the soaring capital expenditures of the five major cloud vendors and the bottlenecks in physical infrastructure indicate that the AI investment cycle is far from over; the second half of this grand performance has just begu...