FTX Repays Creditors Nearly $11 Billion After Bankruptcy

FTX has announced its fifth creditor distribution, which will see creditors receive $900 million in repayments. This comes as part of the company's Chapter 11 reorganization plan and brings the total announced repayments to over $10 billion.

The repayment process is set to begin on July 31, with eligible creditors expected to receive their funds via BitGo, Kraken, or Payoneer within three business days. The size of the actual payment will depend on the creditor class, with users of FTX's global and US exchanges (ftx.com and FTX US) receiving an additional 9% under Class 5a, taking their cumulative recovery to 105% of the value of their approved claims.

General unsecured creditors and holders of crypto loan claims will each receive an incremental 3%, with their total expected to reach 103%. Convenience-class creditors, representing smaller customer claims, will get a cumulative 120% of their approved claims after the latest repayment.