On July 31, FTX made another major move in repaying its creditors, sending out close to $900 million through three trusted payment services. Nearly four years after the exchange's dramatic collapse, this fifth round of payments pushes the total cash returned to creditors close to $11 billion. This payout covers claims verified before June 16, based on valuations from November 2022, which means creditors aren’t seeing the impact of recent crypto price changes.
The FTX Recovery Trust has been using Kraken, BitGo, and Payoneer to get funds into the hands of eligible claimants. Recipients had to complete identity checks and tax paperwork to qualify, with payments expected to arrive within a few business days after the distribution date. Former FTX customer advocate Sunil Kavuri shared that Kraken had already started releasing his funds, signaling the payout process is well underway.
This latest wave follows four earlier distributions, including a $2.2 billion payout back in March aimed at resolving disputed claims. Despite the growing total, the repayments still fall short of what the reorganization plan initially projected. Meanwhile, a $1.76 billion lawsuit filed by Binance remains an unresolved factor in FTX's financial proceedings.
The ongoing process highlights the complexity of untangling a collapsed crypto giant’s obligations. As creditors eventually receive more funds, their returns are calculated on older crypto valuations, a factor that may affect individual recovery amounts in volatile markets.
This material is for informational purposes only and does not constitute financial advice.
