Starting May 30, Over $5B to be Disbursed to FTX Creditors

The FTX Recovery Trust will initiate the payment of over $5 billion to creditors on May 30, in a second round of disbursements following the company's collapse. Creditors are divided into five categories, with varying payout rates ranging from 54% to 120%.

The payments are seen as a significant development by John J. Ray III, who highlighted the team's recovery and coordination efforts. Eligible creditors will receive their funds via Bitgo or Kraken within one to three business days post-May 30. The Trust also mentioned that the repayment schedule for other creditor classes will be announced in time. Total repayments could reach up to $16.5 billion if all claims are filed.

The company's repayment model has faced criticism due to it calculating reimbursements based on crypto values at the time of the bankruptcy filing.