FTX Repays Nearly $11 Billion to Creditors

FTX has made another significant payment to its creditors, sending $900 million through three distribution providers. This latest payout brings the total amount repaid by FTX to nearly $11 billion, a milestone in its ongoing recovery efforts.

The fifth creditor distribution was announced on July 17 and took place on July 31, with eligible claimants receiving funds through Kraken, BitGo, or Payoneer. The payment covered approved claims completed before the June 16 record date, but creditors received claim values tied to November 2022 prices.

FTX's repayment efforts have been ongoing for nearly four years after its collapse in November 2022. The company has used a combination of asset sales, settlements, and litigation recoveries to fund its repayments. However, critics argue that the valuation method used by FTX excludes later gains recorded by digital assets.

The Binance clawback claim, worth $1.76 billion, remains active and could impact future distributions. The case concerns a 2021 share repurchase between Binance and FTX, with Binance disputing liability.