The Wait Is Over: FTX Creditors to Receive $11.4 Billion Starting May 30

TLDR

Table of Contents

FTX will start repaying major creditors on May 30, 2025, with $11.4 billion in cash
Claims are calculated based on November 2022 crypto prices, frustrating many creditors
Creditors are earning 9% annual interest while waiting for repayments
The company faces billions in disputed or fraudulent claims that may delay full distribution
Some smaller “convenience class” creditors have already received payments

The Long Road to Recovery

Nearly two and a half years after its collapse in November 2022, cryptocurrency exchange FTX is finally ready to begin major creditor repayments. The company has amassed $11.4 billion in cash to distribute to those who lost funds when the exchange imploded.

The first wave of payments will start on May 30, 2025. These initial distributions will focus on larger creditors with claims over $50,000. This includes investment firms and institutions that had substantial holdings on the platform.

Some smaller claimants have already received their money. These “convenience class” creditors were processed earlier in the bankruptcy proceedings. This tiered approach allows the company to manage the massive repayment process more efficiently.

Pricing Controversy

The repayment plan has sparked frustration among many creditors. Claims are being valued based on cryptocurrency prices from November 2022. This was when Bitcoin traded between $16,000 and $21,000.

Since that time, crypto markets have seen dramatic growth. Bitcoin has increased by approximately 500% from those prices. Other tokens have performed even better, with Solana up 650% and XRP rising 450%.

This pricing decision means many creditors will receive far less in real terms than their current crypto values. Some had hoped for repayment in actual cryptocurrency rather than cash equivalents based on old prices.

Sunil Kavuri, who represents the largest FTX creditor group, acknowledged mixed feelings about the situation. “It will definitely give closure to many affected by this horrendous ordeal,” he said. “But also, repayment is at petition date prices…so holders are not at full recovery in crypto terms.”

Claim Challenges

The repayment process faces other complications. According to FTX bankruptcy lawyer Andrew Dietderich, the company is dealing with what he called “27 quintillion” total claim submissions.

Many of these claims are believed to be fraudulent or inflated. The company must sort through billions in disputed claims before completing all distributions.

This verification process is time-sensitive. Legitimate creditors continue to accrue 9% annual interest while waiting for their payments. This creates pressure on FTX to resolve claims quickly to avoid additional costs.

The current repayment schedule follows a payout plan approved by the court in October 2023. This plan established the framework for how creditors would be compensated.

FTX has estimated that creditors will receive 118% of their claims back in cash. This percentage includes the additional interest accrued during the waiting period.

The bankruptcy team is now led by CEO John Ray III. He took over after the exchange’s dramatic collapse and has been working to recover assets for creditors.

The repayment process could still take months to complete. This timeline is due to the complex nature of the claims and the need to verify each one carefully.

Many former FTX users have been waiting over two years for any recovery. The May 30 distribution represents a major milestone in the bankruptcy process.

For the crypto industry, the FTX repayment marks one of the largest recovery efforts following an exchange failure. The process will be closely watched by investors and regulators alike.

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