FTX to Begin Creditor Repayments in May as Bankruptcy Saga Nears End

Nearly three years after its dramatic implosion, cryptocurrency exchange FTX is set to begin repaying billions to its largest creditors on May 30, according to court proceedings held this week in Delaware.

The bankrupt exchange has amassed $11.4 billion in cash to compensate thousands impacted by its 2022 collapse. Initial payments will be directed to institutional clients and firms that had funds locked on the platform. Smaller creditors—those owed under $50,000—have already started receiving partial distributions.

FTX’s downfall left a major gap in the crypto industry and ignited long-standing frustration among creditors, many of whom expected reimbursement in digital assets rather than U.S. dollars. With bitcoin prices soaring over 300% since the exchange’s collapse, dollar-based repayments are now worth significantly less in crypto terms.

Complicating matters, the bankruptcy team has been inundated with an overwhelming volume of claims. According to FTX’s legal representative, Andrew Dietderich, the exchange received filings totaling a staggering “27 quintillion” dollars—many of which were either duplicates or outright fraudulent.

Adding pressure to the timeline, unpaid claims accrue 9% annual interest, while the estate’s cash reserves generate minimal returns. The longer the repayment process drags on, the more the estate will owe.