The FTX bankruptcy estate is preparing to distribute approximately $900 million to creditors in its fifth wave of repayments, marking another milestone in the prolonged recovery process for those affected by the exchange’s 2022 collapse.
According to the estate’s latest update, the distribution brings the total amount returned to creditors to nearly $10 billion since repayments began in 2025. The fifth wave covers additional classes of claimants who have had their claims validated and processed through the bankruptcy administration system.
The repayments are being funded through the estate’s substantial asset recoveries, which include liquidated cryptocurrency holdings, seized assets, and proceeds from various legal settlements. FTX’s bankruptcy team has been working methodically through a complex claims process involving hundreds of thousands of individual and institutional creditors across multiple jurisdictions.
The steady pace of distributions has been viewed positively by the creditor community, though some have expressed frustration with the timeline and the valuation methods used for crypto assets that have appreciated since the bankruptcy filing. The estate has prioritized returning funds in U.S. dollar equivalents based on petition-date values rather than current market prices.
FTX’s bankruptcy proceedings remain one of the largest and most complex in the cryptocurrency industry’s history, involving billions of dollars in customer claims, dozens of affiliated entities, and ongoing legal actions against former executives and third parties.
This article was adapted from The Block. Read the original here.
