New $900 Million Liquidity from FTX to the Market: Date for Massive Payment Finalized
The bankrupt cryptocurrency exchange FTX is preparing to provide massive liquidity to the market by distributing approximately $900 million to its creditors as part of its fifth wave of payments.
FTX, which experienced one of the largest bankruptcies in the cryptocurrency world, has reached another critical stage in its liquidation process. The company announced that it will pay approximately $900 million to its creditors within the framework of a new distribution plan starting July 31. With this move, the total amount returned to entitled parties since 2025 will reach $10 billion.
The payments cover both small-scale individual investors and creditor classes with larger claims. Entitled parties are expected to receive their funds via the BitGo, Kraken, or Payoneer platforms within three business days starting from July 31. This new wave, following the $2.2 billion distribution in March, will significantly increase cash flow in the market.
Record Recovery Rate for FTX Creditors
The FTX bankruptcy estate is executing one of the most remarkable resolutions in the industry by repaying retail creditors 118% to 142% above their asset values in 2022. Although there has been criticism regarding the fact that assets are not being returned in kind as cryptocurrency, this high recovery rate in dollar terms represents a significant financial return for investors. The massive $10 billion liquidity total returning to the market supports the recovery process within the ecosystem.
Regarding the legal dimension of the process, Fenwick & West, the former legal counsel for FTX US, settled allegations that it facilitated Sam Bankman-Fried’s fraudulent activities by paying $54 million. This massive liquidation process, conducted under the shadow of the courthouses, continues to conclude as the most complex bankruptcy case in crypto history. These funds to be distributed signal the end of a long wait for thousands of users affected by the exchange’s collapse.