FTX estate to start distributing more than $5B on May 30
Not all FTX account holders will be reimbursed in the second distribution of assets, but the trust said it will send more than $5 billion “within 1 to 3 business days” of May 30.
More than two-and-a-half years after filing for bankruptcy, cryptocurrency exchange FTX is moving forward with repaying users who have not had access to their funds.
In a May 15 notice, the FTX Recovery Trust announced that it would begin disbursing funds to the second group of parties eligible under the exchange’s reorganization plan. Starting on May 30, FTX will send more than $5 billion to creditors “within 1 to 3 business days” through crypto firms BitGo and Kraken.
In accordance with the reorganization plan, FTX said five groups of “convenience classes” would receive between 54% and 120% distribution of assets. The repayment schedule for the next class of creditors will be “announced in due course,” and the debtors were expected to pay up to $16 billion if all claims were filed.