Nearly three years after the shocking collapse that rocked the entire cryptocurrency industry in November 2022, the FTX exchange is now approaching a significant milestone in its bankruptcy and asset recovery process. According to an official announcement from the FTX Recovery Trust, the next asset distribution will officially commence on May 30, 2025, with a total value of over 5 billion USD expected to be paid to eligible creditors.
This payment is part of a large-scale financial recovery plan being implemented by the FTX management team under CEO John J. Ray III. Creditors in various groups will be repaid amounts ranging from 54% to over 100% compared to the value of the assets they lost when FTX declared bankruptcy.
Specifically, the creditor group consists of financial institutions and trading partners of Alameda Research – FTX's investment subsidiary – along with other service providers who will receive between 54% to 72% of the total value of the initial compensation claims. Meanwhile, individuals or organizations with small claims, without collateral, will be distributed at an average repayment rate of about 61%. Notably, claims related to internal interests among FTX's subsidiaries will be paid at rates up to 120% – a figure exceeding the original value due to the special nature of the internal agreements.
The disbursement will be carried out through coordination between the custodian BitGo and the Kraken exchange. Both parties will be responsible for processing and transferring funds to eligible creditors within a timeframe of 1 to 3 business days from May 30.
This is the second phase in the asset distribution plan following FTX's bankruptcy. Previously, in February this year, the first phase disbursed about 1.2 billion USD to creditors with claims under 50,000 USD – classified as the “convenience class”. The current second phase will reach out to the remaining creditor group – accounting for less than 10% of the total – who have not received any compensation since FTX's collapse.
Sharing about this process, Mr. John J. Ray III – the CEO and head of FTX's restructuring process – emphasized that starting to pay the large creditor group is a major turning point in the recovery effort. He stated: “Beginning the distribution to the creditor group not part of the ‘convenience class’ marks an important milestone for FTX. The scale and complexity of this process is unprecedented in the digital asset industry.”
Information about this distribution of over 5 billion USD not only brings hope to thousands of affected investors and institutions but also contributes to strengthening confidence in the recovery potential of the cryptocurrency market after major shocks. This event also marks the transparent and professional efforts of the FTX legal and governance team in addressing the aftermath of one of the most high-profile bankruptcies in crypto history.
