FTX to begin second repayment of approximately 730 billion yen to creditors

## To repay a total of 5 billion Dollars to former customers

The collapsed cryptocurrency exchange FTX announced on the 15th that it will make a second repayment to creditors. Distribution of assets totaling over 5 billion Dollar (approximately 730 billion yen) is expected to begin on May 30, 2025.

There is a view that the repayment of FTX may have a positive effect on the market as former customers buy back cryptocurrencies.

Eligible creditors will receive funds from Bitgo or Kraken, which will be the distribution service provider, within 30 days to 1~3 business days.

To receive the distribution, creditors must complete procedures such as logging into the FTX customer portal, completing customer identity verification (KYC), and submitting the necessary tax forms. FTX has urged caution against phishing scams.

What is FTX?

The cryptocurrency exchange led by Sam Bankman-Fried (SBF). Since its founding in 2019, it rapidly emerged and grew into a major exchange, second only to the industry giant Binance. It later went bankrupt and filed for bankruptcy in the United States in November.

John J. Ray III, the administrator of the FTX repayment assets, commented as follows.

Considering the scope and scale of FTX creditors, this will be an unprecedented repayment. Today's announcement indicates that our team of experts has achieved remarkable success in asset recovery efforts.

We will continue to focus on recovering more claims for our creditors and resolving outstanding repayment requests.

The repayment assets will be paid in US dollars based on the value of the cryptocurrencies as of November 11, 2022, when FTX filed for bankruptcy. An interest of 9% per annum will accrue until the payment is made.

In February, the first repayment was made from retail customers with receivables of 50,000 Dollar (approximately 7.3 million yen) or less.

This time, customers in class 5A from FTX.com will receive 72% of their claims, customers in class 5B from the United States will receive 54% of their claims, and general unsecured claimants in class 6A and digital asset loan claimants in class 6B will each receive 61% of their distributions. Additionally, claimants in class 7, the convenience class, are expected to receive 120% of their distributions.

Since the repayment will be made in US dollars rather than cryptocurrency, it is expected that creditors who receive the funds will also buy back the cryptocurrency. Overall, including previous and future distributions, a total of $14 to $16 billion (2 to 2.3 trillion yen) is expected to be returned to customers.

In February, a survey conducted among creditors, specifically targeting Solana (SOL) investors, indicated that approximately 80% expected to reinvest the repaid funds into cryptocurrency.

Former CEO Sam Bankman-Fried has been convicted of fraud and conspiracy, receiving a sentence of 25 years in prison and the forfeiture of assets amounting to 11 billion Dollars (approximately 1.6 trillion yen).

In a prison interview in February, Mr. Sam described the trial against him as "abuse of prosecutorial power" and indicated a move to seek a pardon from President Trump.