FTX to Begin $11.4B Repayment Plan for Creditors by May 2025

FTX Estate Gears Up to Repay Creditors in Landmark Bankruptcy Case

FTX, the once-prominent crypto exchange that collapsed in November 2022, is preparing to repay $11.4 billion in cash to its main creditors by May 30, 2025, according to a recent report by Bloomberg. After filing for Chapter 11 bankruptcy following a massive liquidity crisis and revelations of fraud, the FTX estate has successfully recovered between $14.7 billion and $16.5 billion in assets, outpacing its $11.2 billion in liabilities. The repayment plan, approved by the court, promises 119% recovery for primary creditors — a rare outcome in large-scale bankruptcies.

Small Creditors Already Receiving Payouts

While larger payouts are scheduled for next year, smaller claimants owed under $50,000 reportedly began receiving distributions as early as late 2024. The estate's efforts, led by restructuring expert John J. Ray III — who previously oversaw Enron’s dissolution — involved selling off assets including:

• Equity stakes in tech companies

• Real estate portfolios

• Digital assets, buoyed by Bitcoin’s market recovery

These efforts helped build the $11.4 billion liquidity pool that will fund the repayments.

Judge Enforces Cash Payouts, Not Crypto

Although some creditors pushed for repayment in cryptocurrency to benefit from Bitcoin’s price growth since 2022, U.S. Bankruptcy Judge John Dorsey ruled that all distributions would be made in cash, based on 2022 claim valuations. Efforts to challenge this ruling and seek crypto-denominated reimbursements appear unlikely to succeed, legal experts suggest.

One of the Largest Bankruptcy Repayments in History

FTX’s resolution ranks among the largest insolvency recoveries ever recorded, with 98% of small creditors expected to be fully repaid within two months of the repayment plan’s implementation. The case has also reignited calls for stricter crypto regulation, underscoring the need for investor protections while supporting blockchain innovation. Тhe repayment strategy, approved in October 2024, is viewed as a potential step toward restoring market confidence — but also a cautionary tale about the risks of inadequate oversight in crypto platforms.