On May 30, the FTX Recovery Trust started payouts to eligible creditors, offering a $5 billion payout every month, beginning with this amount. After the collapse of the crypto exchange in 2022, this is the second time victims have been given compensation.
According to a statement released on May 28, the funds will be distributed to creditors in the Convenience and Non-convenience Classes who have fulfilled all pre-distribution requirements. The reimbursements will cover several categories of claims with varying distribution rates.
Users in the Dotcom Customer Entitlement Claims are receiving 72% of their eligible money, and users in the U.S. Customer Entitlement Claims are getting 54%. Convenience Claims will be paid out at 120% of the claimed amount, which is more than the same amount they first sought. For now, about 61% of General Unsecured Claims and Digital Assets Loan Claims are being reimbursed.
Kraken and BitGo are the official partners handling distribution, and most people should get their payments within a couple of business days.
Many in the cryptocurrency world watch the repayments very closely, as injecting such a huge amount of funds into the market can influence digital currency prices. If a main part of the funds is sold by whales on retail exchanges, analysts predict that volatility may follow.
The recent disbursement takes place after FTX’s first payment of February 18 , which sent $1.2 billion to creditors with claims under $50,000. The Recovery Trust manages the bankruptcy handling, trying to assist in the return of high values to the exchange’s creditors.
