Small creditors have received their payments When will FTX’s major creditors get their money?

In the cryptocurrency field, FTX's bankruptcy was once like a bombshell, causing an uproar. Now, news about FTX creditor repayment has attracted everyone's attention again.

Bankrupted cryptocurrency exchange FTX has been dealing with complex debt repayments since its shutdown. According to Bloomberg on March 31, Andrew Dietderich, the lawyer for Chapter 11 bankruptcy, told the judge who took over the case management that small creditors holding FTX defined as "convenience creditors" have begun to receive payments. These small creditors have a claim amount of USD 50,000 or less, accounting for more than 90% of all creditors in FTX bankruptcy, and they expect to recover 118% of the claims value in USD, including 9.0% of annual interest from November 11, 2022 to the initial distribution date as additional compensation. Currently, eligible small creditors have received repayment allocations within 1 to 3 working days from February 18, 2025.

FTX will make its first payment to the main creditor group on May 30, and the payment will use the $11.4 billion cash reserves collected by the company since its closure. The claims involved in the main creditors are larger, and they wait for repayment for a longer time. From FTX's bankruptcy to the current determination of repayment time for major creditors, it has gone through many complicated procedures. In the early stages of bankruptcy, FTX faced a series of difficulties such as asset liquidation and debt recognition. The bankruptcy case involved a large number of creditors and the situation was complicated. Moreover, the repayment priority and method of different types of creditors also vary, which makes the entire repayment process slow.

For major creditors, the repayment on May 30 is an important node, but it is just the beginning. There are still many uncertainties about how much money they can get back in the future. This not only depends on FTX's existing cash reserves, but also related to factors such as assets that the company may recover in the future, litigation gains, etc. If FTX can proceed smoothly in subsequent asset disposal, it may bring more repayment funds to the main creditors. However, if obstacles are encountered in the process of asset recovery, such as difficulty in realizing some assets and legal disputes involved, the repayment amount and time of the main creditors may be affected.

The repayment action of FTX on major creditors will also have a certain impact on the cryptocurrency market. If the main creditor reinvests some of the funds into the cryptocurrency market after receiving the repayment, it may inject new vitality into the market and drive market capital flow and transaction activity. On the contrary, if the main creditor chooses to invest funds in other areas due to insufficient confidence in the market, the cryptocurrency market may miss the inflow of this part of potential funds.

On May 30, the first repayment of FTX's major creditors attracted much attention, and the subsequent repayment process and its impact on the cryptocurrency market are worthy of continuous attention.