FTX Distributes $2.2B to Creditors as Recovery Nears Completion

FTX, the cryptocurrency exchange that filed for bankruptcy in November 2022, has announced its fourth round of distributions to creditors. The FTX Recovery Trust will begin sending out approximately $2.2 billion on March 31, bringing the total amount distributed since the collapse to an estimated $14-16 billion.

The funds were unlocked after a court-approved reduction of the disputed claims reserve from $4.6 billion to $2.4 billion. Payments will be made in cash at 2022 petition-date values, not current cryptocurrency prices, through distribution service providers BitGo, Kraken, and Payoneer.

Creditors who have already received payments will see their final distributions, with U.S. customer entitlement claims receiving a 5% payout, reaching 100% cumulative recovery. General unsecured claims and digital asset loan claims will each receive 15%, also reaching 100% in total.