- FTX will start repaying $11.4B to creditors on May 30, but values are based on 2022 prices.
- Fake claims have overwhelmed the process, slowing verification and payouts.
- Exchanges like Kraken and BitGo are helping to distribute funds efficiently.
FTX, the collapsed cryptocurrency exchange, will begin repaying creditors on May 30, 2025, distributing $11.4 billion after months of legal disputes. The announcement follows a lengthy bankruptcy process aimed at recovering assets for investors and institutions.
Claims Processing Challenges Amid Surging Bitcoin Prices
According to a report by Random Crypto Pal, FTX’s creditors will begin receiving payouts on May 30, 2025. The court proceedings in Delaware confirmed the plan to distribute $11.4 billion to major creditors, including institutional investors and firms owed over $50,000. Smaller creditors with claims below $50,000 have already received distributions.
Repayment has been particularly difficult because of a tremendous amount of disallowed claims. Andrew Dietderich, the lawyer for FTX in bankruptcy court, disclosed that the company has accumulated “27 quintillion” of claims, many fraudulent or bogus. The filter process is still ongoing, with attempts to sort out valid claims and duplicates, and unfounded submissions.
FTX creditors are becoming increasingly frustrated as their claims are calculated based on November 2022 crypto prices. With the value of Bitcoin increasing by over 500% since then, creditors expecting to be paid back in cryptocurrency will likely suffer a significant loss in value. The disparity between calculated repayment rates and prevailing market prices has driven frustration among affected parties.
Assistance From Exchanges Like BitGo and Kraken
Exchanges like BitGo and Kraken are facilitating the repayment process. If all eligible users submit their claims, the total recoveries could reach $16 billion. The involvement of these exchanges is expected to streamline the distribution process for the pending claims.
₿roodloper, an analyst, commented that payments will not be made all at once, according to the theory that payments will be made in installments. Frustrations aside, the payment process continues as the company progresses towards payment of valid claims.
The ongoing payment process marks a turning point in FTX’s bankruptcy process. Further updates are expected as the May 30 deadline draws near, with parties tracking the process through and through.
