FTX Prepares $900 Million Payout for Creditors

FTX Trading Ltd. and the FTX Recovery Trust are moving forward with a significant repayment plan. They plan to distribute approximately $900 million to eligible creditors beginning on July 31. This event marks the fifth major distribution cycle since the crypto exchange collapsed back in 2022.

The payout is specifically for holders of allowed claims within the Convenience and Non Convenience classes. To qualify, these individuals must have met all necessary requirements by the record date of June 16. The estate is coordinating with platforms like Bitgo and Kraken to facilitate these transfers.

This update is a major milestone for those waiting to recover assets from the defunct exchange. It suggests that the liquidation process is reaching a more mature stage. Traders should watch for how this influx of capital affects market liquidity and sentiment in the coming weeks.