FTX Recovery Trust to Distribute $2.2 Billion to Creditors This Month
The FTX Recovery Trust has overseen asset recoveries and creditor repayments since cryptocurrency exchange FTX filed for bankruptcy in 2022. The distributions will determine how much money affected customers worldwide can recover and serve as a key measure of progress in winding down one of the crypto industry's largest bankruptcies.
The FTX Recovery Trust said its fourth distribution would begin on March 31, with about $2.2 billion to be paid to debtors and creditors. After this round, cumulative recovery rates for several customer claim classes will reach 100%, with some receiving as much as 120%.
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The history behind this eventFTX to Pay Creditors $900 Million in Fifth Distribution
FTX, once one of the world’s largest cryptocurrency exchanges, filed for bankruptcy in November 2022 after a liquidity crisis left customers and other creditors unable to access billions of dollars. The estate and its recovery trust have since raised cash by recovering funds and selling assets. The pace and size of distributions are closely watched as a measure of creditor recoveries from one of the digital-asset industry’s biggest collapses.
FTX and its recovery trust said the fifth distribution will begin on July 31, with about $900 million scheduled to be paid to eligible creditors. The latest round will bring cumulative distributions since the bankruptcy filing to roughly $10 billion. Recipients who have met the required eligibility and account conditions can receive payments through approved distribution providers BitGo, Kraken or Payoneer.
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