FTX is preparing to initiate its second round of creditor payouts on May 30, aiming to distribute over $5 billion to eligible claimants, as announced by the company. This payout will be processed through either BitGo or Kraken, with payments expected to reach recipients within one to three business days.
This upcoming distribution is part of FTX’s ongoing bankruptcy proceedings and follows the initial payouts that began in February for creditors with claims under $50,000. The second round will expand to include creditors with claims that exceed this amount, marking a significant step in the company’s efforts to resolve its financial obligations.
As reported by Bloomberg in March, FTX, led by CEO John Ray III, has approximately $11.4 billion set aside for creditor repayments. However, it is important to note that the payouts will reflect the value of digital assets as of the date of the bankruptcy filing, meaning creditors will receive amounts based on lower valuations from the time of FTX’s collapse.
The distribution will vary based on different claim categories. For instance, Dotcom Customer Entitlement Claims will receive 72%, while US Customer Entitlement Claims will get 54%. General Unsecured Claims and Digital Asset Loan Claims will each receive 61%, and Convenience Claims will be reimbursed at a rate of 120%.
FTX’s CEO emphasized the significance of these distributions, stating that they represent a crucial milestone for the company.
