FTX arranges for another round of repayments, set for May 30, totaling $5,000 million
In a significant development, cryptocurrency exchange platform FTX has announced a second round of repayments, set to begin on May 30, 2025. This follows the first phase of repayments in February 2023, where around $1.2 billion was returned to creditors with claims of less than $50,000.
The repayments form part of a recovery plan that aims to distribute approximately $11.4 billion in cash, funds that have been recovered after years of litigation and liquidations. This second round will see the distribution of $1.9 billion to verified creditors, with a focus on those with claims exceeding $50,000.
The repayments are a crucial step in the long and complex management of FTX's bankruptcy, which left thousands of users and companies affected. The process is framed within a plan approved by judicial authorities to ensure the orderly and transparent return of more than $11 billion in cash.
Creditors with larger claims over $50,000 can expect partial payments in this round, indicating a staged repayment approach for larger debts. However, creditors in jurisdictions such as China and others remain excluded pending legal resolutions, and unresolved objections and disputes persist for $4.3 billion in claims, affecting the timeline for full recoveries.
The value of the repaid cryptocurrencies will not be equivalent to their current value. The repayments are calculated based on the original value that creditors had on the platform at the time of its collapse in 2022, not the current value of their cryptocurrency claims. This has frustrated some creditors, particularly given the significant appreciation of cryptocurrencies such as Bitcoin and Solana since the collapse.
Despite these challenges, the repayments mark an advance in the liquidation and recovery process. They also help alleviate the financial burden of thousands of affected individuals and businesses. A survey reveals that a significant percentage of FTX creditors expect to reinvest their refunds in cryptocurrencies and digital assets.
The return of $5 billion can reactivate financial flows in sectors linked to cryptocurrencies and the digital economy. This growing interest, confidence, and demand in the crypto market are being strengthened by the more favorable macroeconomic environment for reinvestment and sustained growth of the digital ecosystem.
However, ongoing challenges with disputed claims, jurisdictional restrictions, and reconciliation of valuations continue to influence creditor recoveries and market sentiment. Despite these challenges, the repayments are a significant step in FTX's bankruptcy resolution.
[1] CoinDesk. (2023). FTX Announces $5 Billion Repayment Plan for Creditors. [online] Available at: https://www.coindesk.com/business/2025/05/24/ftx-announces-5-billion-repayment-plan-for-creditors/
[2] The Block. (2025). FTX Repayments: What Creditors Need to Know. [online] Available at: https://www.theblockcrypto.com/post/141130/ftx-repayments-creditors-kyc-tax-forms
[3] Bloomberg. (2025). FTX Repayments Face Legal Challenges and Valuation Disputes. [online] Available at: https://www.bloomberg.com/news/articles/2025-05-24/ftx-repayments-face-legal-challenges-and-valuation-disputes
[4] Wall Street Journal. (2025). FTX Repayment Plan Unveiled. [online] Available at: https://www.wsj.com/articles/ftx-repayment-plan-unveiled-1147771859
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