FTX Credits Get $2.2B March Payout After Reserve Reduction

FTX has announced that it will distribute approximately $2.2 billion to creditors on March 31, marking its fourth payout since the exchange's collapse in November 2022.

The funds were unlocked after a court-approved reduction of the disputed claims reserve, which shrunk from $4.6 billion to $2.4 billion.

Payments will be made in cash at 2022 petition-date values, not at current cryptocurrency prices, and will be processed through distribution service providers BitGo, Kraken, and Payoneer.

Creditors can expect to receive funds within one to three business days of the start date, with eligible creditors expected to reach full repayment in various classes, including U.S. customer entitlement claims and digital asset loan claims.