FTX Trading Ltd and FTX Recovery Trust have announced their readiness to begin the second phase of creditor repayments starting May 30, 2025.
Start of Creditor Payments
FTX is preparing to commence repayments to creditors as part of its bankruptcy plan, with a payout of over $5 billion scheduled to begin on May 30, 2025.
Details on Fund Distribution
Creditors with approved claims will be able to receive their funds from their selected distribution service provider, such as Bitgo or Kraken, within 1 to 3 business days from the start of the payout. Different claim classes will receive varying distribution rates.
Administrator's Insights and Market Impact
John J. Ray III, Plan Administrator of the FTX Recovery Trust, referred to this event as an important milestone for the company. He emphasized that the scope of the asset recovery and distribution organization is historically significant, which could spur activity in the cryptocurrency market.
The initiation of the second phase of FTX creditor payments marks a significant step in the company's recovery process and may impact the cryptocurrency market.
