After Years of Legal Turmoil, FTX to Commence $11.4B Repayments to Creditors in May

FTX to Distribute $11.4B to Creditors Starting May 30 After Prolonged Bankruptcy Case

FTX is finally preparing to repay its biggest creditors, with the first round of disbursements slated for May 30—nearly three years after the exchange’s spectacular collapse rocked the crypto world.

The failed crypto platform, once led by Sam Bankman-Fried, has secured $11.4 billion in cash reserves, which will be used to compensate institutional investors and major firms that had assets frozen on the exchange during its November 2022 bankruptcy. The update came during a court hearing in Delaware this week, as reported by Bloomberg.

Some smaller creditors—those owed less than $50,000—have already started receiving partial payments. However, frustration remains high among many larger stakeholders, particularly because repayments will be made in U.S. dollars, not crypto. Since the bankruptcy, bitcoin has surged more than 4x, significantly diminishing the real value of fiat repayments.

FTX’s bankruptcy estate has been mired in complications, including an avalanche of claims—many of which are believed to be inflated or fraudulent. In court, FTX attorney Andrew Dietderich revealed the company received a surreal total of “27 quintillion” dollars in claims, underscoring the scale of the mess left behind.

Delays are also racking up extra costs. Creditors are entitled to 9% annual interest on legitimate unpaid claims, while FTX’s cash holdings yield only modest returns—making timely payouts a growing financial burden for the estate.