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FTX has started sending out billions to creditors as it works through its bankruptcy process. The collapsed crypto exchange is now issuing another round of repayments, moving closer to fulfilling court-approved plans from late 2023.
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After distributing early repayments to small-scale creditors earlier in the year, FTX has now moved to a broader set of claimants. The latest batch includes both the “Convenience Class” and those with larger balances. The process began Friday, with recipients expected to receive their funds within three business days.
Funds are being sent out via trusted platforms like BitGo and Kraken. FTX noted in its statement that more payout phases are on the way and will be announced when ready.
FTX has about $11.4 billion in cash on hand and is using part of that reserve for this round. A large chunk of the recovery has been possible due to higher crypto prices and the exchange’s stake in Anthropic, an AI-focused research firm. FTX owns around 8% of the company, which gained value as interest in AI grew globally.
A court-approved plan allows the exchange to return between $14.7 billion and $16.5 billion to creditors. Most customers are expected to receive around 119% of the value they held when FTX collapsed in November 2022.
FTX filed for bankruptcy in late 2022 after a dramatic collapse linked to mismanagement and illegal fund transfers. Its former chief executive, Sam Bankman-Fried, faced criminal charges for fraud tied to customer funds being misused by Alameda Research, FTX’s trading affiliate. He was convicted in 2023 and sentenced to 25 years in prison the following year.