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FTX Begins $5B Creditor Payouts Amid Market Debate

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Disclaimer :

The information provided in this news article is for informational purposes only and reflects publicly available data and opinions at the time of writing. It should not be considered financial or investment advice.

On May 30, 2025, the FTX Recovery Trust commenced its second major distribution, allocating $5 billion to eligible creditors. This follows the initial $1.2 billion disbursed in February to claimants with amounts under $50,000.

The current payouts encompass various claim categories:

  • Dotcom Customer Entitlement Claims: 72% distribution

  • US Customer Entitlement Claims: 54% distribution

  • Convenience Claims: 120% distribution

  • General Unsecured and Digital Asset Loan Claims: 61% distribution 

Eligible creditors who completed the necessary pre-distribution steps are expected to receive their funds within one to two business days via Kraken or BitGo.

However, the reimbursement strategy has faced criticism. Distributions are based on asset values as of November 2022, when Bitcoin was approximately $16,000, rather than current market prices. This approach means some creditors recover only 10%–25% of their holdings' present value. FTX creditor advocate Sunil Kavuri highlighted that this method leaves many "not whole," despite official confirmations from the Department of Justice and bankruptcy court.

The influx of funds into the market has led to speculation about potential impacts on crypto prices. Analysts are monitoring whether recipients will reinvest their reimbursements into digital assets, potentially influencing market dynamics.

As FTX continues its repayment process, the broader implications for the crypto ecosystem remain under close observation.

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