The FTX bankruptcy estate has announced a fifth distribution of approximately $900 million to creditors, scheduled for July 31. The payout brings the total amount returned to former customers since bankruptcy proceedings began in late 2022 to approximately $12 billion.
The distributions cover customers whose claims have been fully verified and approved by the estate. Eligible creditors will receive payments through the designated distribution channels that have been established during the bankruptcy process.
The estate has been systematically returning funds to creditors as it liquidates assets and resolves claims. The process has been one of the largest and most complex in bankruptcy history, involving millions of customers across multiple jurisdictions.
Creditors with general unsecured claims and digital asset loan claims will receive cumulative recoveries of approximately 103 percent of their claim value under this distribution plan. Convenience claims are set to receive cumulative recoveries of up to 120 percent.
The distributions are being funded by the estate recovery of assets, including cryptocurrency holdings, cash, and proceeds from asset sales. The FTX estate has benefited from the recovery in cryptocurrency prices since the initial bankruptcy filing, which has increased the dollar value of the asset pool.
Creditors who have not yet completed the required verification steps are urged to do so promptly to ensure they receive their distribution in this round. Future distributions are expected as remaining claims are resolved.
This article was adapted from Blockonomi. Read the original here.
