FTX Pays $900 Million as Creditor Repayments Near $11 Billion
Key Insights
- FTX sent creditors $900 million in repayment through three distribution providers.
- The fifth payout pushed estimated repayments toward $11 billion.
- A $1.76 billion Binance clawback claim remained active.
FTX began its fifth creditor distribution on July 31, sending about $900 million through approved payment providers. The FTX Recovery Trust said eligible claimants could receive funds through Kraken, BitGo, or Payoneer. The payment covered approved claims completed before the June 16 record date.
The payout advanced FTX repayment efforts nearly four years after the exchange collapsed. It also moved the estate closer to completing its cash-based recovery plan. However, creditors received claim values tied to November 2022 prices, not current cryptocurrency prices.
FTX Starts Fifth Distribution Through Three Providers
FTX announced the fifth distribution on July 17 through the Recovery Trust. The trust scheduled payments for July 31 under the court-approved Chapter 11 reorganization plan. Eligible creditors could expect funds within one to three business days.
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