After more than 800 days of restructuring, FTX finally initiated its first creditor repayment in late February this year, primarily targeting convenience-class creditors and customers with claims under $50,000.

FTX’s Next Wave of Claim Registration and Repayment Timeline

According to a weekend report by Bloomberg, FTX is expected to officially begin the repayment process for creditors with claims exceeding $50,000 starting May 30.

However, the asset value received by creditors is calculated based on the bankruptcy filing date (November 11, 2022) and paid in U.S. dollars. Since then, Bitcoin (BTC) has surged by 500%, Ripple (XRP) has skyrocketed by approximately 450%, and Solana has soared by an astonishing 650%. Even Ethereum (ETH), which has underperformed recently, has risen by nearly 47% compared to that time.

This means that even if creditors recover their assets with an annual interest rate of about 9%, those who held mostly cryptocurrencies on FTX at the time are still likely to face significant losses.

Can $11.4 Billion Spark a Crypto Market Revival?

The market initially anticipated that the repayment to small-scale creditors in February would boost market growth. However, amid fluctuations from Trump’s tariff war and lower-than-expected payouts for small creditors, Bitcoin’s performance remained sluggish.

With this round of repayments to large creditors, FTX officials still hold approximately $11.4 billion in cash. Whether this can inject fresh momentum into the cryptocurrency market remains to be seen and will require time to assess.

Suspicious Claims Explosion: 27 Quintillion and Counting

Another previously undisclosed detail is that Andrew Dietderich, the lawyer overseeing the bankruptcy, pointed out a recent flood of seemingly fraudulent or suspicious claims in the case. This has slowed the process of identifying legitimate creditors. Shockingly, there are now up to 27 quintillion claim records, the vast majority of which are fraudulent, sparking outrage.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.