FTX to Distribute $1.6B to Creditors on September 30 in Latest Repayment Effort

FTX News: Bankrupt Crypto Exchange to Repay $1.6B on Sep. 30 in Latest Redistribution The FTX Recovery Trust announced on Friday that it will distribute $1.6 billion to creditors on September 30, marking the third major payout since the crypto exchange's collapse in November 2022. According to a statement from the FTX Recovery Trust, payments will begin on September 30 for creditors who have completed verification steps on the FTX claims portal. The funds will be routed directly to eligible accounts, with no additional action required by creditors. "This distribution is another significant step towards making our creditors whole," said John J. Ray III, the chief executive of the FTX Recovery Trust. The latest round of redistributions follows previous payouts that have returned over $6 billion to creditors. The September 30 payment brings the total amount repaid to creditors to nearly $8 billion. "We are committed to transparency and fairness throughout this process," said Ray. "We will continue to work tirelessly to ensure that our creditors receive the compensation they deserve." The collapse of FTX in November 2022 sent shockwaves through the cryptocurrency market, leaving thousands of investors with significant financial losses. The exchange's bankruptcy estate has been working to repay victims since then, with a focus on transparency and fairness. The $1.6 billion distribution is part of the FTX Recovery Trust's plan to make creditors whole after the collapse of Sam Bankman-Fried's exchange. "We understand that this process has taken time, but we are committed to getting it right," said Ray. "Our goal is to ensure that our creditors receive the compensation they deserve as quickly and efficiently as possible." The FTX Recovery Trust has been working closely with creditors and other stakeholders to facilitate the distribution of funds. The trust's efforts have been praised by many in the industry, who see them as a model for responsible corporate governance. As the FTX Recovery Trust continues to work towards making creditors whole, it remains to be seen how this latest development will impact the cryptocurrency market. "The FTX collapse was a major setback for the industry, but it has also led to significant reforms and improvements in corporate governance," said David Yermack, a finance professor at New York University's Stern School of Business. The next step in the process is for creditors to receive their payments on September 30. The FTX Recovery Trust will continue to work with creditors and other stakeholders to ensure that the distribution process runs smoothly. Background: FTX was once one of the largest cryptocurrency exchanges in the world, but its collapse in November 2022 sent shockwaves through the market. The exchange's bankruptcy estate has been working to repay victims since then, with a focus on transparency and fairness. Additional Perspectives: "The FTX collapse was a major setback for the industry, but it has also led to significant reforms and improvements in corporate governance," said David Yermack, a finance professor at New York University's Stern School of Business. "We understand that this process has taken time, but we are committed to getting it right," said John J. Ray III, the chief executive of the FTX Recovery Trust. Current Status: The FTX Recovery Trust will distribute $1.6 billion to creditors on September 30, marking the third major payout since the crypto exchange's collapse in November 2022. Next Developments: The next step in the process is for creditors to receive their payments on September 30. The FTX Recovery Trust will continue to work with creditors and other stakeholders to ensure that the distribution process runs smoothly. *Reporting by Coindesk.*