FTX Trading Ltd. will begin distributing over $5 billion to creditors on May 30, 2025, as part of its Chapter 11 reorganization. This marks the second phase of the plan for the bankrupt crypto exchange's parent company. Eligible creditors should receive funds via Bitgo or Kraken within one to three business days.
The FTX estate's ability to reimburse customers is attributed to successful investments in startups and tokens. However, reimbursements are based on the dollar value of accounts at the time of FTX's bankruptcy in November 2022. Some former customers have criticized this approach, as it reflects market lows.
Despite the criticism, some crypto traders anticipate the disbursements could positively impact token prices. The expectation is that traders may reinvest the funds they receive. This potential reinvestment could provide a boost to the cryptocurrency market.
This article is based on our author's analysis of materials taken from the following resources: news.yahoo.com.