David Edwards
By May 30, 2025, the troubled cryptocurrency exchange FTX is expected to start paying back its principal creditors. In order to support these distributions, the business has accumulated over $11.4 billion in liquid assets since its collapse in November 2022.
Creditors who started receiving payments earlier this year and had “convenience claims” (those with claims of $50,000 or less) were given priority in the initial disbursements. The largest claims, which include individuals and institutions owing significant amounts, will be covered by the upcoming May payouts.
Due to the large number of claimants and the requirement to verify each claim, the payback procedure is complex. To expedite this process, FTX set up a Customer Claims Portal, where creditors must authenticate themselves and provide the necessary paperwork.
To make matters worse, the value of Bitcoin has more than quadrupled since FTX’s bankruptcy, which has angered former clients who expected to be reimbursed in digital assets rather than cash. The settlement process is also being prolonged by FTX’s scrutiny of a number of dubious claims, some of which may be in violation of “know your customer” (KYC) laws.
The management of FTX is nevertheless dedicated to accelerating the payback process in spite of these obstacles, seeking to strike a compromise between the interests of creditors and legal requirements.
