FTX owes clients and other non-government creditors approximately $11 billion, with $3.1 billion owed to the top 50 unsecured creditors. Now Kavuri has stated that FTX is beginning to repay $16 billion and will make payments in stablecoins.
As early as May 8, 2024, FTX expressed that after completing all asset sales, there would be up to $16.3 billion in cash available for distribution, with plans to use these funds to repay debts.
According to HODL15 Capital's post on platform X, FTX will begin repaying $16 billion, with claims processing starting on January 3, 2025. Kavuri also added that the funds could be distributed in stablecoins.
The $16 billion compensation fund of FTX mainly comes from the following sources:
- Asset recovery and liquidation: FTX successfully recovered a significant amount of cash, cryptocurrencies, and other assets through careful reconstruction of financial records and mobilizing assets globally during the bankruptcy proceedings. For example, selling its investment in the artificial intelligence startup Anthropic, among others, converted various assets into funds available for compensation.
- Appreciation of cryptocurrency assets: Although FTX cannot simply return the original cryptocurrency assets deposited by clients, some cryptocurrency assets, such as Solana, have appreciated during its holding period, contributing to the overall increase in its asset value and providing more funding sources for compensation.
- Other lawsuit recovery amounts: The FTX bankruptcy management has pursued legal actions to recover funds from relevant parties, such as suing CZ for the recovery of $1.8 billion, suing the buyer of SkyBridge Capital to recover losses from the improper use of client funds, suing Huobi exchange to recover $27 million in assets, and suing international crime groups to recover $468 million, etc.