FTX Begins Second Distribution, Delivering Up to 120% Payouts Amidst Creditor Disputes

FTX has begun its second distribution wave, releasing over $5 billion in funds to eligible creditors. This marks an important step towards addressing outstanding claims following the company’s bankruptcy, but challenges remain as creditor disputes persist regarding outdated valuation metrics set during the crypto market crash. 120% payouts are being offered for convenience claims, with other groups receiving varying percentages of their respective claims. While this distribution is part of FTX’s Chapter 11 plan, it has sparked concerns and potential market volatility as billions in recovered funds could be exchanged or sold across retail exchanges.