- FTX will begin repaying more than $11 billion to major creditors starting May 30.
- Creditors are frustrated that repayments are based on 2022 crypto prices.
- Billions of disputed or fraudulent claims may delay full distributions.
FTX will begin repaying its primary group of creditors on May 30, marking a major milestone in its prolonged bankruptcy proceedings.
This comes nearly two and a half years after the exchange’s high-profile implosion in November 2022.
According to statements made in court this week by bankruptcy lawyer Andrew Dietderich, the company has gathered $11.4 billion in cash to distribute.
Initial repayments will go to larger creditors — including investment firms and institutions — while smaller claimants have already started receiving distributions.
Despite the forthcoming payments, not everyone is happy about how their claims were calculated.
Claims are being honoured based on November 2022 prices, when Bitcoin was trading between $16,000 and $21,000.
Since then, Bitcoin has surged over 400%, while tokens like Solana and XRP have seen even sharper gains.
Many creditors argue this significantly reduces their real recovery, especially those hoping for repayment in crypto rather than cash.
FTX is also grappling with a deluge of questionable claims.
Dietderich said the company faces “27 quintillion” total submissions, with billions deemed fraudulent or inflated, according to Bloomberg.
Resolving those issues is urgent, as legitimate creditors are accruing 9% annual interest while they wait.
The repayment process follows the October 2023 court approval of FTX’s payout plan.
While some jurisdictions remain excluded — including Russia, China, and Egypt — the estate is reviewing options, according to those familiar with the matter.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
