FTX to Start Creditor Repayments on May 30 After 27-Month Battle

FTX is set to begin repaying its creditors on May 30, marking a significant step in resolving its lengthy bankruptcy process. The repayments come after 27 months of legal proceedings following the exchange’s dramatic collapse in November 2022.

According to court filings, the distribution will prioritize customers and creditors based on an approved restructuring plan. While the exact payout amounts vary, FTX has reportedly recovered substantial assets through asset sales, settlements, and legal actions.

The repayment process follows extensive efforts by the bankruptcy team to liquidate remaining assets, including cryptocurrency holdings, investments, and other corporate assets. The goal has been to maximize creditor recoveries while addressing regulatory and legal challenges.

Despite the upcoming payouts, some creditors have expressed concerns over whether they will receive full compensation, as the bankruptcy case involved billions in lost funds. However, FTX’s legal team has stated that it has secured enough funds to meet its obligations within the approved repayment framework.

FTX’s collapse was one of the largest financial failures in the crypto industry, leading to increased regulatory scrutiny and reforms aimed at protecting investors. The repayment process marks a turning point in the case, signaling progress in closing one of the most high-profile bankruptcy battles in the sector’s history.