FTX Recovery Trust to Distribute Over $5 Billion to Creditors, Potential Market Boost Seen
Starting Friday, the FTX Recovery Trust will begin distributing more than $5 billion in cash and stablecoins to creditors, with payments expected to arrive within three business days through BitGo and Kraken.
This marks the second major repayment phase following the collapse of the exchange. The initial round, which kicked off on February 18, returned approximately $7 billion to creditors with claims under $50,000. However, that earlier payout had little impact on the broader crypto markets, which continued to face pressure from macroeconomic challenges.
According to analysts at Coinbase, this latest wave of repayments could potentially help lift the crypto market amid a more positive investor sentiment. Unlike the previous distribution, these payments will be made primarily in stablecoins, providing recipients with immediate on-chain liquidity. This shift could affect how the recovered funds are reinvested or deployed.
Additionally, the crypto market’s overall outlook has improved due to rallies in key digital assets and growing regulatory clarity. Institutional investors, in particular, may be more inclined to act on incoming funds as the U.S. Congress advances legislation to better define regulatory oversight of digital assets.
