Catenaa, Monday, March 31, 2025-FTX will start repaying major creditors on May 30, 27 months after its collapse, but claims will be valued at the November 2022 bankruptcy filing price, significantly lower than current market values.
Bankruptcy attorney Andrew Dietderich confirmed that the defunct exchange, now under CEO John Ray III, will distribute funds from its $11.4 billion cash reserve.
Some “convenience class” creditors have already received payments. However, digital asset claims remain valued at pre-recovery levels, leaving many creditors with substantial losses in crypto terms.
Bitcoin has surged 500% since the bankruptcy filing, while Solana and XRP have risen 650% and 450%, respectively. Yet, creditors will only receive the petition date valuation, despite FTX estimating 118% recovery in cash. Critics argue this fails to reflect actual market conditions.
“Repayment at petition date prices means creditors won’t see full recovery in crypto terms,” said Sunil Kavuri, a representative of FTX’s largest creditor group.
FTX faces a race to settle claims, with an annual 9% interest rate accumulating on unpaid debts. Fraudulent claims could also slow the process, Bloomberg reported.
