The post FTX to Begin $11.4 Billion Creditor Repayments on May 30 appeared on BitcoinEthereumNews.com.

TLDR FTX will begin repaying major creditors $11.4 billion starting May 30, 2025 Claims are valued at November 2022 prices, when Bitcoin was worth 80% less than today Smaller creditors under $50,000 have already begun receiving payments The company faces billions in disputed or fraudulent claims that may delay full distribution Despite controversy over valuation dates, creditors are expected to receive 118-119% of their claims in cash Nearly two and a half years after its collapse, cryptocurrency exchange FTX will start repaying its major creditors on May 30, 2025. The company has amassed $11.4 billion in cash for distribution to those with claims exceeding $50,000. This marks a key milestone in the lengthy bankruptcy process that began in November 2022. The exchange imploded after revelations that founder Sam Bankman-Fried had misused customer funds to prop up his hedge fund Alameda Research. Smaller claimants with amounts below $50,000 have already started receiving their money. About 98% of these minor creditors were paid within two months of the repayment plan’s activation. FTX’s bankruptcy attorney Andrew Dietderich confirmed the payment timeline in court this week. The estate is ready to begin distributing funds to larger creditors, including investment firms and institutions. FTX’s Path from Collapse to Repayment The company has overcome huge hurdles to reach this point. Bankruptcy Judge John Dorsey approved FTX’s payout plan in October 2023, setting the stage for these repayments. CEO John J. Ray III, who previously handled Enron’s dissolution, has led the asset recovery efforts. His team reclaimed between $14.7 billion and $16.5 billion in assets by selling stakes in tech companies, property holdings, and digital currencies. This successful asset recovery means FTX now has more money than its $11.2 billion in liabilities. The approved restructuring plan should allow creditors to receive 118-119% of their claim value in…

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Filed under: News - @ March 31, 2025 2:25 pm