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AMB Crypto 2025-05-16 12:00:45

FTX to start second round of repayments worth $5B – Who gets paid this time?

FTX to begin $5B creditor repayments on the 30th of May via BitGo and Kraken. Recovery rates range from 54% to 120%, based on claim type and class. FTX is set to begin its second round of creditor repayments on the 30th of May under its court-approved Chapter 11 reorganization plan. FTX’s second round of creditor repayments According to the recent announcement , eligible claimants who have completed the necessary pre-distribution steps will start receiving funds through their chosen platforms, i.e., Bitgo or Kraken, within a few business days. This phase will see over $5 billion distributed, marking a major milestone in the collapsed exchange’s ongoing efforts to compensate affected users and rebuild trust. As per the plan, FTX’s repayment process will cover four distinct creditor classes, with recovery rates ranging from 54% to as high as 120%, depending on the nature of the claims. These figures are based on the U.S. dollar value of assets held by customers at the time of the platform’s collapse in November 2022. What’s more? Class 5 claimants, including Alameda Research partners, trading vendors, and lenders will recover 54% to 72% of validated claims. FTX will repay smaller, unsecured creditors approximately 61%, while it will settle intercompany claims from subsidiaries in full, with an added 20%. In fact, the FTX Recovery Trust has already pushed over 90% of eligible claims into the distribution pipeline, and BitGo and Kraken will transfer funds within one to three business days after the 30th of May. Remarking on the same, John J. Ray III, Plan Administrator of the FTX Recovery Trust, said, “These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base makes this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals. Our focus remains on recovering more for creditors and resolving outstanding claims.” Will the crypto market turn bearish once again? However, while previous FTX’s distribution had triggered a prolonged crypto winter, casting doubts on market stability, the current scenario tells a more nuanced story. Despite ongoing concerns, such as Solana [SOL] ‘s recent price dip from $224 to $140 driven by heavy sell-offs, reduced activity, and looming token unlocks, the broader market remains resilient. The global crypto market cap has reached $3.44 trillion, reflecting a modest 1.1% uptick in the last 24 hours, as per CoinGecko. Bitcoin [BTC] has surged to $103,655 with a 1.7% daily gain, while Solana traded at $171.14 despite recent turbulence. These indicators suggest that while caution is warranted, the market isn’t necessarily entering a full bearish phase just yet.

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