FTX is set to distribute an additional $900 million to its creditors starting tomorrow, pushing total repayments to nearly $10 billion since the exchange’s collapse in 2022. Remarkably, many creditors are recovering more than their initial claims based on the bankruptcy filing date, with some smaller accounts receiving up to 120% back.
This fourth payout marks significant progress in the bankruptcy proceedings and continues a trend of unusually high recovery rates compared to typical insolvency cases. The exchange’s effort to repay creditors stands out in the crypto industry, where recoveries have often been limited or partial.
