FTX will start reimbursing over $5 billion to its creditors starting May 30 as part of its post-bankruptcy restructuring plan.
Recovery rates range from 54% to 120% depending on categories, with a calculation basis in dollars at the time of the exchange’s collapse in November 2022.
BitGo and Kraken will handle the fund distribution, with transfers expected within one to three business days for over 90% of validated claims.
It’s official: victims still waiting for reimbursement since the FTX collapse will begin to regain their money. Starting May 30, over $5 billion will be redistributed to thousands of creditors as part of the bankrupt exchange’s restructuring plan.
According to the FTX Recovery Trust, refunds will cover four major categories of creditors, with recovery rates ranging from 54% to 120% of the amounts held at the time of the collapse in November 2022. The calculation basis remains the US dollar balance at the time of bankruptcy, regardless of asset volatility in the meantime.
‘Class 5’ creditors, primarily Alameda Research counterparties, lenders, and trading providers, will receive between 54% and 72% of their validated claims. Unsecured small creditors are expected to recover around 61%. Notably, intercompany claims between FTX subsidiaries will be fully reimbursed… at 120%.
Two well-known ecosystem players will handle logistics: BitGo and Kraken will ensure fund transfers to eligible beneficiaries. Payments are expected to be processed within one to three business days starting May 30.
The FTX Repayment Trust states that over 90% of claims have already been validated and integrated into the distribution process. After over two years of procedures, disappointments, and uncertainties, creditors are finally preparing to turn the page.
