FTX Begins $5 Billion Monthly Payments to Creditors

FTX’s Recovery Trust initiated its second round of payments to eligible creditors, releasing a total of $5 billion each month. This follows the FTX collapse in 2022 and serves as a significant step toward providing compensation to those affected. 2023’s payment plan targets creditors within specific classes, including Convenience and Non-convenience Claims. The reimbursements cover claims categorized by type and varying distribution rates, with some exceeding the original amount sought. Users in the Dotcom Customer Entitlement Claims are receiving a substantial 72% of their eligible funds. In the U.S. Customer Entitlement Claims, users have received an average of 54%. Convenience Claims will be paid out at 120% of the claimed amount, exceeding what they initially requested. As of now, around 61% of General Unsecured Claims and Digital Assets Loan Claims are being reimbursed.