FTX Prepares to Unleash Billions in Creditor Payouts—Just Try Not to Faint From Shock
After years of radio silence and legal wrangling, the collapsed crypto giant finally coughs up a repayment plan. Mark your calendars for late May—that’s when the first wave of multi-billion dollar distributions hits creditor accounts.
The catch? Payouts will be a fraction of original claims, because nothing says ’crypto bankruptcy’ like settling debts at 15 cents on the dollar. Lawyers and hedge funds get first dibs, naturally.
FTX’s new management swears this isn’t another delay tactic—just don’t ask how they valued those illiquid ’Sam Coins’ still rotting on the balance sheet.
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This unexpected recovery rate—higher than the value of the assets when the firm went under—is largely attributed to the recent rally in crypto prices and FTX’s stake in Anthropic, an artificial intelligence company that has seen rapid valuation growth.
FTX’s downfall was triggered by allegations that former CEO Sam Bankman-Fried redirected billions in customer funds to Alameda Research, the firm’s trading arm. He has since been convicted on multiple fraud charges.
The exchange has promised additional payout rounds in the coming months, offering some closure to creditors in what has been one of crypto’s most high-profile collapses.
