FTX Accelerates Repayments
The FTX platform, which collapsed in November 2022, is preparing to distribute nearly $1.6 billion to its creditors by the end of September. This distribution, the third of its kind, marks a significant step forward in rebuilding trust in the FTX ecosystem, almost three years after its spectacular downfall.
Not all creditors will receive the same treatment. US customers will receive 40% of their claim, bringing their total reimbursement to 95%. International “dotcom” customers will benefit from an additional 6%, bringing their total reimbursement to 78%.
General creditors and those with digital loans will see their assets repaid up to 24%, equivalent to 85% of their initial claim. Notably, the FTX Recovery Trust will fully reimburse small claims, known as ‘Convenience Claims’. Even adding a bonus that brings them to 120% of their initial amount.
Trust Is Being Rebuilt
This new distribution of $1.6 billion is part of a progressive reimbursement process led by the FTX Recovery Trust. Since the platform’s collapse, the FTX Recovery Trust has already paid out more than $6 billion to customers and creditors. With the goal of gradually restoring confidence in the ecosystem.
The implosion of FTX was a severe blow to the entire crypto sector in 2022, marking the beginning of a long bear market. Its founder, Sam Bankman-Fried, has since been sentenced to 25 years in prison for fraud and conspiracy. While he serves his sentence, creditors of his former empire continue to recover a portion of their assets in what remains a long and complex process.
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