FTX to Repay Main Creditors in May With $11.4 Billion Fund

Former cryptocurrency exchange FTX is ready to start repaying its first group of key creditors by the end of May 2025. A Bloomberg report revealed that this will be done using a cash hoard of $11.4 billion it received since declaring bankruptcy.

Major Creditors to Start Receiving Payments on May 30

According to bankruptcy lawyer Andrew Dietderich, repayments will be made to the firm’s main group of debt holders beginning on May 30. This is considering that the company started paying back minor creditors who hold ‘convenience claims’ on February 18, 2025. FTX’s major creditors include investors owed millions of dollars and institutions that had crypto on the platform during its 2022 crash.

The repayment process might take a long time as the company has a long list of debtors to repay. According to Deitderich, there are up to “27 quintillion claims” (27 followed by 18 zeros), billions of which are flawed. The attorney further explained that FTX needs to pay creditors as quickly as possible.

This is because the interest rate the company earns on the cash hoard is smaller than the 9% interest rate the creditors are accumulating while awaiting repayment. To cap it all off, bitcoin’s value has quadrupled since the company’s bankruptcy, much to the displeasure of creditors who sought to get paid in digital assets instead of dollars.

FTX’s First Repayment Round Details

FTX’s woes began in November 2022. The once-leading crypto exchange and its sister trading firm, Alameda Research, experienced a cataclysmic collapse, shocking the broader crypto market. It also left investors with massive losses amounting to billions of dollars. The incident led to the company’s founder, Sam Bankman-Fried (SBF), being sentenced to 25 years in prison. He was charged with several financial crimes, including fraud and conspiracy. Since then, FTX has resorted to gathering funds to repay creditors.

In October 2024, the United States Bankruptcy Court for the District of Delaware approved the company’s repayment plans, which projected the assets available for distribution to range between $14.7 billion and $15.6 billion.

Fast-forward to February 18, 2025, when the company began its first round of repayments to creditors. Termed the convenience class, the creditors who benefited were affected users with claims of less than $50,000.