FTX to Begin $2.2 Billion Creditor Repayment in Latest Distribution Round

FTX is set to distribute another $2.2 billion to creditors starting March 31, marking its fourth payout phase under the Chapter 11 restructuring plan. Eligible recipients are expected to receive funds within three business days through service providers such as BitGo, Kraken, and Payoneer.

Creditor Classes and Recovery Rates

The distribution covers both convenience and non-convenience creditor classes. Retail focused convenience claims are projected to receive cumulative payouts of around 120%, while some non-retail categories are seeing increased recovery rates. “Dotcom Customer Entitlement Claims” are now expected to recover up to 96% of losses, with other classes effectively reaching full recovery at 100%.

Total Repayments and Ongoing Controversy

FTX has already returned more than $6 billion to users and investors since its collapse in 2022. Despite progress, the repayment process has faced criticism, particularly for valuing claims based on prices at the time of bankruptcy rather than current market levels.

Legal Background and Case Developments

The restructuring plan was approved by John Dorsey in 2024. Meanwhile, former CEO Sam Bankman-Fried continues to challenge aspects of the proceedings, including asset valuation and legal costs tied to the bankruptcy process.

Disclaimer

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