FTX to begin repaying claims on May 30
FTX begins $50K+ creditor repayments May 30
More than two years after its dramatic collapse, defunct crypto exchange FTX is poised to begin repaying major creditors, with initial disbursements scheduled to start on May 30.
According to bankruptcy attorney Andrew Dietderich, the estate—now managed by CEO John Ray III—will draw from its $11.4 billion cash reserve to cover claims exceeding $50,000.
The announcement, reported by Bloomberg, marks a significant milestone in one of the largest and most complex crypto bankruptcies to date. However, Dietderich cautioned that the process remains fraught with challenges, including what he described as "27 quintillion" claims—many of which are suspected to be fraudulent or invalid.
Valuation controversy and creditors' discontent
The FTX bankruptcy estate plans to repay claims based on the value of digital assets at the time of its Chapter 11 filing on November 11, 2022. While the company estimates that creditors will ultimately recover up to 118% of their original claim value in cash, many creditors argue this figure is misleading.
Since the bankruptcy filing, the price of Bitcoin has surged by nearly 500%, while Solana and XRP have climbed over 600% and 450%, respectively. Ethereum has also seen a 47% increase. Critics note that because claims are being valued at pre-rally prices, creditors are receiving only a fraction of what their crypto holdings would be worth today.
What comes next
Although some "convenience class" creditors have already received partial repayments, larger claims are expected to take longer to process. Claimants will also accrue 9% annual interest on their original claim value, further pressuring FTX to accelerate the distribution process.
“This will definitely give closure to many affected by this horrendous ordeal,” said Sunil Kavuri, a representative of FTX’s largest creditor group. “But repayment is at petition date prices, so holders are not at full recovery in crypto terms.”
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