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FTX is set to begin repaying its creditors on May 30, marking a major milestone in its lengthy bankruptcy proceedings.
According to court filings and a Bloomberg report, the exchange—now led by restructuring expert John Ray III—will initiate repayments for creditors owed more than $50,000. These payments will be drawn from FTX’s $11.4 billion cash reserve.
Some smaller creditors, categorized under the “convenience class,” have already received repayments.
Andrew Dietderich, an attorney for the estate, noted that the company is dealing with a staggering number of claims, including many that are fraudulent or inflated, totaling what he called “27 quintillion” submissions.
“This brings some closure,” said Sunil Kavuri, who represents a major FTX creditor group. “But the recovery is based on outdated prices—creditors aren’t being made whole in crypto terms.”
Solana alone has jumped around 650%, while Bitcoin and XRP are up 500% and 450%, respectively.
While FTX has stated that many creditors may receive up to 118% of their claim value in cash, critics argue that this figure doesn’t reflect the massive gains in crypto prices since the collapse.
If all eligible users file complete claims, FTX could distribute approximately $16 billion in total recoveries. Earlier this year, Backpack Exchange, a cryptocurrency trading platform founded by former FTX and Alameda Research employees, claimed that ihadas officially acquired FTX EU, the European arm of the collapsed FTX exchange.
Crypto firms BitGo and Kraken have announced their involvement in assisting with FTX’s repayments.
Meanwhile, in the US, the Justice Department is seeking the return of up to $13.25 million in political contributions linked to former FTX executives, as revealed in a recent federal court filing.
Judge Lewis Kaplan, who is overseeing the criminal proceedings against former FTX CEO Sam Bankman-Fried and his associates, approved the government’s request for an extension until January 15 to negotiate with various political action committees (PACs).
However, FTX denied the claims, saying that the deal had not been approved by Delaware’s US Bankruptcy Court.