Have you been waiting long enough? According to The Block, the bankrupt cryptocurrency exchange FTX will launch its third round of debt distribution on September 30th, distributing an estimated $1.6 billion to creditors. This distribution will include both "convenience" and "non-convenience" creditors. The former are primarily retail investors and small creditors, accounting for 99% of FTX's total creditors, while the latter are large or complex claims.
FTX declared bankruptcy in November 2022 due to a liquidity crisis and a scandal involving misappropriation of funds by senior management, subsequently entering Chapter 11 reorganization under the US Bankruptcy Code. According to the bankruptcy plan finalized in October 2024, FTX has successfully recovered over $15 billion in assets, including cash reserves, recovered funds, the sale of Bankman-Fried's stakes in AI startup Anthropic and brokerage Robinhood, and a large number of crypto assets such as SOL and SUI.
The first two rounds of distributions have resulted in a return of approximately 120% of the principal amount paid to most retail creditors. However, some users have expressed dissatisfaction with the cash distribution method, arguing that if denominated in their original cryptocurrency, their assets would be worth far more than cash, especially given the recent crypto market rebound. Meanwhile, unsecured creditors (such as Class 6A general unsecured claims and Class 6B digital asset loan claims) have received a cumulative 85% of their principal amount and are expected to receive a full refund.
This round of distributions will be made through designated service providers, including Bitgo, Kraken, and Payoneer, and is expected to be completed within one to three business days starting September 30th. FTX emphasized that all distributions will be made in accordance with the court-approved restructuring plan and will continue to maximize creditor interests.
The FTX bankruptcy case represents not only the largest fund recovery in cryptocurrency history, but has also garnered significant attention from global regulators and market participants. As the asset distribution process nears its end, the market will continue to monitor fund flows and subsequent regulatory developments.
