FTX to initiate third round of creditor repayments totaling $1.6 billion

The bankrupt cryptocurrency exchange FTX will launch its third round of creditor distributions on September 30th, with a planned total of approximately $1.6 billion. This round of payments will be distributed to both "convenient" and "non-convenient" creditors. Convenient creditors primarily comprise individual and small creditors, who account for 99% of the total creditor base. Based on FTX's previous two distribution plans, retail users were expected to receive approximately 120% of their account balances at the time of bankruptcy in fiat currency. However, some users have expressed dissatisfaction, pointing out that the current cryptocurrency market has rebounded significantly and that the cash payments are far below the value of their original assets. To date, unsecured creditors have received 85% of their payments, and the FTX bankruptcy plan anticipates that these creditors will ultimately receive full repayment. The bankruptcy plan is based on over $15 billion in recovered assets, including cash, proceeds from the sale of Anchorage, Robinhood stock, and cryptocurrencies such as Sol. Eligible creditors can expect to receive their payments through partner service providers such as BitGo, Kraken, or Payoneer within 1-3 business days starting September 30. FTX filed for bankruptcy in November 2022 due to a liquidity crisis, and subsequently revealed that a large amount of user funds had been misused and management was out of control.