On July 23, the bankrupt cryptocurrency exchange FTX announced that it would launch the next batch of creditor claim distributions on September 30, 2025, a key step in its bankruptcy liquidation process.

This allocation was made possible by the U.S. Bankruptcy Court's agreement to reduce the disputed claims reserve from $6.5 billion to $4.3 billion, releasing $1.9 billion in funds for the next round of creditor repayments and alleviating the company's financial pressure.

Source: Prnewswire

According to the announcement released by FTX, this distribution covers three types of claims: Class 5 customer equity claims, Class 6 general unsecured claims, and newly approved convenience claims. The claim registration deadline is August 15, and only creditors who complete KYC verification, submit tax documents, and complete registration on either BitGo, Kraken, or Payoneer before this date will be eligible for repayment.

FTX repaid $1.2 billion in February | Source: X
FTX repaid $5 billion in May | Source: X

This will be the third large-scale repayment to creditors by FTX this year. Previously, the exchange had repaid $1.2 billion and $5 billion in February and May, respectively, for a cumulative repayment of $6.2 billion. According to the reorganization plan, FTX is ultimately expected to distribute $14.7 billion to $16.5 billion, and approximately 98% of creditors are expected to receive at least 119% of their claim amount in compensation.

Jurisdictional and repayment standards are still in dispute

However, there are still disputes in the repayment process. FTX plans to refuse to repay customers in 49 "restricted jurisdictions" such as China and Russia, of which China alone involves $800 million in claims, accounting for 82% of the total disputed amount. Weiwei Ji, a representative of 300 creditor users in China, has filed an objection, arguing that the decision lacks legal basis and is discriminatory.

Weiwei Ji defends the rights of Chinese creditors through legal channels

Another point of contention is the repayment valuation standard. FTX calculates compensation based on the price of cryptocurrencies at the time of bankruptcy in November 2022, when the price of Bitcoin was around $16,000 to $20,000, far below the current market price of around $120,000. Although some creditors have filed lawsuits demanding repayment at the current market price, the court is currently maintaining the original plan.

It is worth noting that FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for fraud and is not expected to be released until 2044. As the repayment process advances, this largest bankruptcy case in the cryptocurrency industry is gradually coming to an end, but its far-reaching impact on industry regulation and investor protection will continue.

Conclusion:

In summary, as the repayment process gradually advances, what we see is not only the act of repaying funds, but also the difficult quest to rebuild trust and reshape rules.

Although the repayment plan still has two major controversies: repayment restrictions for creditors in 49 jurisdictions, including China, and valuation standards calculated based on the bankruptcy price rather than the current market price, the overall repayment work is still progressing in an orderly manner.

However, while this epic bankruptcy case will eventually come to an end, it leaves more questions than answers!

What do you think of the FTX bankruptcy liquidation progress? Do you think the FTX repayment plan is fair? Leave your opinion in the comments!

#FTX #破产清算 #债权人偿付