Key Takeaways
FTX estate is set to repay about $2 billion in its third round on the 30th of September. It has distributed over $7 billion since the beginning of the year, and over $8 billion left to go.
The defunct FTX crypto exchange will make its third repayment on September 30th. Victims will receive about $1.9 billion released from the $6.5 billion ‘disputed claims reserve.’
Part of the firm’s statement read,
“FTX received authority from the Bankruptcy Court to reduce the disputed claims reserve by $1.9B, from $6.5B to $4.3B, releasing cash to be distributed to holders of allowed claims in the next distribution.”
This meant that the $1.9B was verified and was no longer being disputed, hence freed for repayments.
FTX repayment schedule
The payouts will go to Class 5 customer entitlement claims and Class 6 general unsecured claims per the firm’s repayment plans.
Notably, the record date for tax, KYC, distributor, etc, will be on the 15th of August, and payments will be done via BitGo, Kraken, and Payoneer.
FTX collapsed in November 2022, deepening the crypto winter at that time. The collapse followed massive fund mismanagement, including misuse of customer assets between the exchange and its sister firm Alameda Research.
The exchange filed for bankruptcy, revealing about $16 billion in creditor claims. Afterward, the FTX estate has managed to recover assets and liquidate some of the exchange’s holdings and stake in other businesses.
Source: AMBCrypto
The recovered assets have since helped the estate to launch phased repayments, with nearly $7 billion set to be distributed by the 30th of September 2025.
Notably, the first repayment for claims under $50K was about $0.5 billion, issued on the 18th of February.
In May, the estate held a second and major distribution for all allowed claim classes, amounting to over $5 billion.
The upcoming repayment round on 30th September will be the third distribution, with $1.9 billion set for victims. Overall, about $7.4 billion will be repaid by September 2025.
Still, the remaining disputed claims reserve of $4.3B and expected recovered assets (about $5B) would leave about $8.6B for later distribution.
That said, FTT, the native token of the defunct exchange, shrugged off the update and dumped 15%, dropping from $1.08 to $0.91 at press time.