FTX Launches $5 Billion Repayment Phase: Second Major Distribution

The FTX Recovery Trust, led by renowned bankruptcy expert John J. Ray III, has initiated the second phase of repayment for creditors. This distribution, totaling $5 billion, follows a previous $4.7 billion payout in March 2023, bringing the total repaid to $9.7 billion. The trust, collaborating with BitGo and Kraken, is executing a structured process to distribute funds effectively. 54% to 120% recovery rates were realized across four creditor classes, according to experts. The positive market response to this latest disbursement reflects a growing sense of confidence in the ongoing recovery efforts.