FTX to Begin Multi-Billion Dollar Creditor Repayments by End of May

FTX, the defunct crypto exchange at the center of one of the industry's biggest scandals, is preparing to begin large-scale repayments to its creditors starting May 30.

According to a new update, more than $5.4 billion will be distributed during this first round, with eligible recipients receiving funds through either BitGo or Kraken within several business days.

The payout comes from FTX’s reported $11.4 billion in cash reserves and marks the beginning of a broader restitution plan that was approved by a U.S. bankruptcy court in late 2023. While initial distributions for smaller creditors began earlier this year, this upcoming wave targets larger claimants—including individuals and institutions with multimillion-dollar exposures.

The court-approved strategy is expected to return between $14.7 billion and $16.5 billion to customers affected by the platform’s collapse in November 2022. Notably, around 98% of claimants are projected to receive roughly 119% of the value they were owed at the time of FTX’s bankruptcy filing.

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This unexpected recovery rate—higher than the value of the assets when the firm went under—is largely attributed to the recent rally in crypto prices and FTX’s stake in Anthropic, an artificial intelligence company that has seen rapid valuation growth.

FTX’s downfall was triggered by allegations that former CEO Sam Bankman-Fried redirected billions in customer funds to Alameda Research, the firm’s trading arm. He has since been convicted on multiple fraud charges.

The exchange has promised additional payout rounds in the coming months, offering some closure to creditors in what has been one of crypto’s most high-profile collapses.