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FTX has announced a payment plan to give back $16 billion in Cash to its creditors beginning May 30.
The FTX exchange had a multi-billion-dollar market cap, with its native token FTT trading above $80 per coin until its downfall in November 2022. Considering its popularity in global transactions, the token was considered a utility token. The FTX collapse left exchange creditors with huge losses, opening recovery investigations in the United States.
However, in a recent anticipated payment plan, FTX’s bankruptcy team has confirmed repayments scheduled to begin on May 30, 2025. According to the plan, creditors could expect a recovery between 123% and 140% of their original claims. The payments are to be offered in cash instead of crypto, giving them a bonus and cash liquidity.
The $16 billion payout comes from the recovered assets and funds. Administrative claims, U.S and Dotcom users can expect full refunds. Some institutions could see higher returns. Following such a dark moment in the crypto market, crypto regulation is continuously improving to make the space safe for investors globally.
