FTX Pays Out $900 Million in Fifth Wave of Creditor Payouts

FTX, the cryptocurrency exchange that collapsed in November 2022, is distributing its fifth wave of payouts to creditors. The total amount for this round is $900 million and will be paid out on July 31.

This brings the cumulative distributions since the collapse to $10 billion. FTX's Recovery Trust has been steadily moving assets through BitGo, Kraken, and Payoneer to fund these payments.

What's remarkable about this situation is that creditors are receiving more than they lost in the collapse. In fact, small creditors under $50,000 will get a 120% payout, while all other creditors will receive 118% of their losses.

This is an unusual and positive development for the cryptocurrency industry, which has often been criticized for not doing enough to protect investors. However, it's essential to note that these payouts are funded by the same assets that FTX stole from its users in the first place.