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FTX will distribute another $2.2 billion to creditors starting March 31.
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This is the fourth payout round, bringing total distributions above $6 billion.
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Many creditors are expected to recover up to 100% or more of their claims.
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Funds will be distributed through platforms such as BitGo, Kraken, and Payoneer.
FTX Continues Creditor Repayments
Bankrupt crypto exchange FTX is preparing to distribute an additional $2.2 billion to creditors as part of its ongoing Chapter 11 restructuring process.
The distribution is scheduled to begin on March 31, with eligible recipients expected to receive funds within three business days.
This marks the fourth round of repayments since the company entered bankruptcy proceedings.
Recovery Rates Improve for Creditors
FTX has already returned more than $6 billion to users and investors.
In the latest round, several creditor classes will see improved recovery rates. Some groups are expected to receive up to 100% of their claims based on the value of assets at the time of the bankruptcy filing in 2022.
Retail creditors in the convenience class are projected to receive up to 120% of their claims.
Distribution Process and Participants
Payments will be handled by distribution partners including BitGo, Kraken, and Payoneer.
Different creditor classes will receive varying levels of recovery depending on the nature of their claims.
The restructuring process aims to provide an orderly return of funds while maintaining transparency under court supervision.
Ongoing Debate Around Bankruptcy Process
Despite the progress in repayments, the process has faced criticism.
Some creditors have raised concerns about not receiving their assets in kind, meaning they are repaid based on past valuations rather than current market prices.
Meanwhile, former CEO Sam Bankman-Fried has publicly criticized the bankruptcy proceedings, though his claims have been disputed by the estate and regulators.
The case remains one of the largest and most closely watched restructurings in the crypto industry.
