FTX will launch the second round of $5 billion repayments—who will be compensated this time?
Two years after the collapse, FTX is finally set to initiate the second round of creditor repayments! Starting May 30, this former crypto giant will distribute over $5 billion in cash to eligible creditors through the BitGo and Kraken platforms. According to the court-approved bankruptcy restructuring plan, this repayment will be divided into four categories based on the type of claims, with a maximum recovery rate of 120%.
Overview of repayment details
▶ Category 5 claimants: including affiliates of Alameda Research, trading service providers, etc., can receive compensation of 54%-72%.
▶ Ordinary unsecured creditors: approximately 61% repayment ratio.
▶ Subsidiary internal debts: full payment + 20% additional compensation.
▶ Other categories: calculated based on the USD value at the point of asset freeze.
FTX recovery trust administrator John J. Ray III emphasized: "This is the first large-scale cash payout since the collapse; considering the scale and complexity of the creditors, it is an unprecedented challenge in the industry." Currently, the trust has included over 90% of eligible claims in the payout process, and BitGo and Kraken will complete the transfers within 1-3 working days.
The funds for this repayment mainly come from the disposal of bankruptcy assets and have limited correlation with current crypto market liquidity. However, caution is advised regarding assets like Solana that were deeply linked to FTX, as they may still face unlocked selling pressure risks in the future.
Additional information
This repayment is limited to court-recognized eligible claimants, and the specific arrival time depends on the platform's processing efficiency. Creditors who have not yet submitted claims should do so promptly through the FTX official website; missing the deadline may affect the repayment ratio. As the bankruptcy process advances, FTX may initiate a third round of repayments, but the specific timeline has not yet been clarified.
