FTX to Begin $11.4B Creditor Payouts in May 30, 2025

[freedomgo]

This is probably what the company’s major creditors have been waiting for, considering we’re talking about $11.4 billion here.

It was reported that they had been paying off debts before, but those were likely for smaller creditors. This time, it’s a huge amount, and hopefully, it will have a positive impact on the market once creditors able to receive their refunds.

https://www.coindesk.com/markets/2025/03/29/ftx-to-begin-usd11-4b-creditor-payouts-in-may-after-years-long-bankruptcy-battle

What to know:
FTX has gathered $11.4 billion in cash to repay creditors after its 2022 collapse.
Payments to main creditors will begin May 30, according to court proceedings.
A large amount of potentially fraudulent claims still need to be reviewed.

[OmegaStarScream]

Yes, the last repayments were for those who were owed up to 50,000$. I believe (and someone corrects me if I'm wrong) the initial amount was 16 billion? So they already paid almost 5B to creditors? Can't say that was very noticeable?

[freedomgo]

Yes, the last repayments were for those who were owed up to 50,000$. I believe (and someone corrects me if I'm wrong) the initial amount was 16 billion? So they already paid almost 5B to creditors? Can't say that was very noticeable?

Based on the report, they owe a total of $11.2 billion to creditors, while they’ve recovered between $14.5 billion and $16.3 billion.

Looking at these numbers, it seems like they haven’t really started disbursing payments before, and I haven’t read any reports of anyone receiving payouts yet, so this might be the first and possibly the final distribution.

https://apnews.com/article/ftx-crypto-bankman-fried-creditor-6365ceb2565deb891da9b268db94b7a8

FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors. The exchange estimates that it has between $14.5 billion and $16.3 billion to distribute to them.

[Potato Chips]

Looking at these numbers, it seems like they haven’t really started disbursing payments before, and I haven’t read any reports of anyone receiving payouts yet, so this might be the first and possibly the final distribution.

Distribution for victims with below $50K claims have begun on February 2025.

Supporting posts from providers who facilitated the payments:
1.https://x.com/BitGo/status/1891912214866788546
2. https://x.com/krakensupport/status/1889058486467838274

I believe there should be user reports on CT or the r/FTXOfficial subreddit.

Though, I think, this is just a small percentage of the money pot. This upcoming one in May is huge—let's see how the market will react.

[tread93]

This is probably what the company’s major creditors have been waiting for, considering we’re talking about $11.4 billion here.

It was reported that they had been paying off debts before, but those were likely for smaller creditors. This time, it’s a huge amount, and hopefully, it will have a positive impact on the market once creditors able to receive their refunds.

https://www.coindesk.com/markets/2025/03/29/ftx-to-begin-usd11-4b-creditor-payouts-in-may-after-years-long-bankruptcy-battle

What to know:
FTX has gathered $11.4 billion in cash to repay creditors after its 2022 collapse.
Payments to main creditors will begin May 30, according to court proceedings.
A large amount of potentially fraudulent claims still need to be reviewed.

Wow this is huge! I am sure a lot of folks will be taking profits but we will see what kind of impact it has on the market in a few months time. If there are crazy outflows and it drives the price down a little but it will just be some normal volatility for a while and then the price will probably continue to go back up at that time. Around that time hopefully the US will also make a monster purchase of Bitcoin and maybe we see new a time highs!

[john_egbert]

Great to see the matter going, even though it's not the end.
Still, I hope that eventually, everything will be paid up.

[freedomgo]

Looking at these numbers, it seems like they haven’t really started disbursing payments before, and I haven’t read any reports of anyone receiving payouts yet, so this might be the first and possibly the final distribution.

Distribution for victims with below $50K claims have begun on February 2025.

Supporting posts from providers who facilitated the payments:
1.https://x.com/BitGo/status/1891912214866788546
2. https://x.com/krakensupport/status/1889058486467838274

I believe there should be user reports on CT or the r/FTXOfficial subreddit.

Though, I think, this is just a small percentage of the money pot. This upcoming one in May is huge—let's see how the market will react.

Thanks for providing proof, it clarifies the matter. But since the initial refund was small, it didn’t create much buzz. However, this time, it’s the biggest refund yet, and as expected, it could have a positive impact on the market. Since this isn’t BTC being refunded, there won’t be any major dumps happening.

[MArsland]

This is probably what the company’s major creditors have been waiting for, considering we’re talking about $11.4 billion here.

It was reported that they had been paying off debts before, but those were likely for smaller creditors. This time, it’s a huge amount, and hopefully, it will have a positive impact on the market once creditors able to receive their refunds.

https://www.coindesk.com/markets/2025/03/29/ftx-to-begin-usd11-4b-creditor-payouts-in-may-after-years-long-bankruptcy-battle

What to know:
FTX has gathered $11.4 billion in cash to repay creditors after its 2022 collapse.
Payments to main creditors will begin May 30, according to court proceedings.
A large amount of potentially fraudulent claims still need to be reviewed.

In general what I know is that whenever there is a large FTX debt distribution, the market will respond slightly negatively because usually the recipient will immediately sell the long-awaited rights. I have also received several messages to liquidate assets in FTX with several stages including KYC, but because the amount is not large plus having to KYC it doesn't feel comparable to what I get.

[crwth]

Could this be one of the reasons why the market is going down? I believe it can be because a lot of people have been really waiting for this and just want to get done with crypto. I know some people who were affected by this and just didn’t want to be in the cryptocurrency market because of their negative experiences.

A lot of people might be sending this once they receive their payout.

[freedomgo]

Could this be one of the reasons why the market is going down?

As mentioned in the report, "FTX has gathered $11.4 billion in cash to repay creditors after its 2022 collapse."

This shouldn’t impact the market negatively since it’s not Bitcoin being distributed. In fact, it could have a positive effect because this money can be reinvested back into the market.

[OgNasty]

Every time I see something about this FTX distribution it is different than the last news. It would be nice if we got some fresh powder dumped on the market before more people panic sell to Blackrock. Hopefully this isn’t another mtgox situation where these people will still be waiting for their funds in a decade.

[headingnorth]

The distribution payouts are in CASH so it will certainly have a positive impact on the market, the only question is by how much.

[boyptc]

Could this be one of the reasons why the market is going down?

Paid in cash so, not really.

But every time that there's a news like this, it could be a market mover so if it's about the possibility of the reasons. There is a chance but we can't be sure if this is the actual reason why the market is bleeding.

I'm expecting that we shall see the rally by that time when the payment is released.

[freedomgo]

The distribution payouts are in CASH so it will certainly have a positive impact on the market, the only question is by how much.

That’s something we don’t know, but I also don’t think it’s that hyped, so I’m not expecting a huge positive impact. Because from what I’ve noticed, traders actually prefer negative impacts over positive ones when exchanges are involved so they can buy cheap and make some easy short-term profits.

[coolcoinz]

Could this be one of the reasons why the market is going down?

As mentioned in the report, "FTX has gathered $11.4 billion in cash to repay creditors after its 2022 collapse."

This shouldn’t impact the market negatively since it’s not Bitcoin being distributed. In fact, it could have a positive effect because this money can be reinvested back into the market.

It should be a positive factor because statistically at least some of that money will go back into bitcoin. If you had an investment and the holder of that investment went bankrupt, this doesn't mean you'll be done with the asset. Personally, I'd get scared at first, then probably for the first few months until it was not clear that they will claw back any funds I'd most likely feel depressed and say goodbye to the money, and then being actually given some of it back, I'd put it back to work.

It's possible some of the debtors will be bankrupt by then and have loans to pay. These people will use FTX repayments to get back on their feet. Those who are in a stable condition will most likely still buy cryptocurrencies, especially since they can safely get into Blackrock ETF.

[Faisal2202]

This is probably what the company’s major creditors have been waiting for, considering we’re talking about $11.4 billion here.

It was reported that they had been paying off debts before, but those were likely for smaller creditors. This time, it’s a huge amount, and hopefully, it will have a positive impact on the market once creditors able to receive their refunds.

The amount is really big and they announced that they have collected this amount by selling their assets and by booking profit from other investments, if I did not get that announcement wrong, point is they had this amount of money don't know if that money is clear or not but at least they are willing to repay but I thought they already started repaying and you said they did not.

Well, I just checked the news and I was confusing it with MT Gox, well, at that time they will be paying those who have less than $50k.

[Fiatless]

Every time I see something about this FTX distribution it is different than the last news. It would be nice if we got some fresh powder dumped on the market before more people panic sell to Blackrock. Hopefully this isn’t another mtgox situation where these people will still be waiting for their funds in a decade.

The Mt Gox disbursement to affected investors has not been straightforward. The trustee kept postponing the repayment several times because it started happening last year. I guess some investors might have died before the money started coming in. So I commend the handlers of FTX asset recovery and repayment process led by the new CEO, John Ray III. Hopefully, everyone who lost money will get it back.

[Bitcoin_Arena]

How many times has this payout thing been postponed though? And who else's thinks they will postpone it again?

I am one of the people who believes that they will do it again. Imagine the reason for the recent change of distribution dates was because they had a "quadrillion false claims" Like how does this happen if a user is supposed to first log in using former FTX login credentials, fill in the 2FA codes, undergo serious KYC verification that has to be passed before even filing for any claims 

[AmoreJaz]

Every time I see something about this FTX distribution it is different than the last news. It would be nice if we got some fresh powder dumped on the market before more people panic sell to Blackrock. Hopefully this isn’t another mtgox situation where these people will still be waiting for their funds in a decade.

The Mt Gox disbursement to affected investors has not been straightforward. The trustee kept postponing the repayment several times because it started happening last year. I guess some investors might have died before the money started coming in. So I commend the handlers of FTX asset recovery and repayment process led by the new CEO, John Ray III. Hopefully, everyone who lost money will get it back.

And some died owed to the stress brought by this fallout. I guess very few can actually get their refunds. Then, for sure the entity holding such huge amount of money will be the one benefiting from it.
For the documented creditors with high amount owed by this company, I believe, they will refund them first.
But why it is up until now, they haven't disbursed them yet? It was said last year that they will start distributing this Jan 2025, and yet, we are already in April and no news yet of the distribution. Creditors are expected to get about 119% of their claim though. But for small holders in the defunct exchange, I believe, you need to wait longer than these big time creditors.

https://www.cnbc.com/2024/10/07/ftx-bankruptcy-judge-approves-more-than-14-billion-payback-plan.html

[Darker45]

~snip~

~snip~

And some died owed to the stress brought by this fallout. I guess very few can actually get their refunds. Then for sure the entity holding such huge amount of money will be the one benefiting from it.

Surely, a big amount of cash will remain unclaimed. I don't know what they will do with it, but I can only hope that the money that remains are those who belong to creditors who willingly waived their claims one way or another.

However, it seems much of what will be left are money of those who badly want to get refunds but can't because of the poor refund system. The last time, valid claimants in many parts of the world are left with no choice because the available refund options aren't available to them.

If they still don't have such options until now, this is another round of stress for them. What they got was false hope.