The bankrupt crypto exchange FTX has begun distributing more than $5.4 billion to creditors.
The payouts represent the exchange’s second round of distributions after smaller creditors categorized in FTX’s “Convenience Class” started receiving repayments in February.
[adinserter block="1"]Creditors in this round include “convenience class” members and larger claims. They will all receive funds via BitGo or Kraken within one to three business days from Friday, per a new press release.
FTX will make payouts from its $11.4 billion cash reserves, and the exchange says subsequent distributions will be announced “in due course.”
In October, a US bankruptcy court greenlit FTX’s plan to distribute between $14.7 billion and $16.5 billion worth of payouts to the crypto exchange’s former customers.
The plan calls for 98% of the exchange’s creditors to receive approximately 119% of the value of their holdings on the day FTX filed for bankruptcy in November 2022.
The increased payouts are thanks to crypto prices and FTX’s 8% stake in the AI (artificial intelligence) safety and research company Anthropic.
FTX imploded and filed for bankruptcy amid accusations that its then-chief executive, Sam Bankman-Fried, mishandled the exchange’s funds by loaning out billions of dollars worth of customer deposits to Alameda Research, the firm’s trading arm.
A US judge sentenced Bankman-Fried to 25 years in prison last year after he was convicted of fraud charges in 2023.
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