FTX is settling an overwhelming $5 billion in financial obligations
Unraveling FTX's Bankruptcy Process: A Rapid Recap
In a game-changing move, the FTX Recovery Trust – overseeing the aftermath of FTX's demise – announced a staggering $5 billion payout to creditors on May 30, 2025. This massive distribution comes as the second major wave to those adversely affected by FTX's collapse.
Stepping Stone to Repayment: The Creditor Payment Schema
In a statement released on May 15, 2025, FTX disclosed that creditors had been segregated into five distinct categories, each with a specific payout ratio. The Class 5A creditors stand to receive 72% of their claims, while their Class 5B counterparts receive slightly less at 54%. The Class 6A and 6B groups, composed of small lenders and those associated with Alameda Research, will secure 61% of their claims. Strikingly, the Class 7 Easy Claims group will receive an impressive 120% of their claims.
John J. Ray III, spearheading the operation, applauded the payments as a significant stride forward:
"This is a massive leap for FTX. The sheer size and multifaceted nature of our creditor base represent uncharted territory."
Ray further emphasized the team's working synergy, stressing their unwavering commitment to maximizing recovery for creditors.
Creditors can expect to receive their payments within one to three business days following May 30, 2025, through the crypto custodian (Bitgo or Kraken) of their preference. Notably, these distributions will supersede any direct cash claims from the exchange, as all payments will be facilitated solely through the guarded platforms.
The FTX Recovery Trust has so far left the payment plans for additional creditor classes undisclosed, with speculation suggesting that total repayments could surge beyond $16.5 billion if all claims are met.
On a separate note, FTX's bankruptcy administration instigated legal action against NFT Stars Limited and Delysium in April 2025. These legal proceedings seek to retrieve digital assets allegedly belonging to the company, bolstering its post-bankruptcy asset recovery efforts.
One Point of Contention: The Repayment Model's Calculation Method
However, the repayment strategy – which bases installments on the assets' worth at FTX's bankruptcy declaration, disregarding any cryptocurrency price increase – has raised some eyebrows. This model permits certain creditors to receive payments below current market value.
** A Special Treat from Binance (*Exclusive for our site visitors*): Register today via this link and seize an exclusive $600 reward from Binance*Details*** FacebookTwitterLinkedInTelegram**
In the context of FTX's bankruptcy process, an upcoming trend might emerge in the finance sector as investors seek opportunities to capitalize on the returning assets from the FTX Recovery Trust.This controversial repayment model, based on the assets' worth at FTX's bankruptcy declaration, could potentially offer undervalued NFTs for savvy investors in the business world.
