FTX to Start Next Round of Creditor Repayments on Sept. 30

FTX, the once prominent crypto exchange, will begin the next round of cash redistribution on Sept. 30, the bankrupt firm said in a statement on Wednesday.

The firm, which was led by founder Sam Bankman-Fried, started paying back its creditors earlier this year. FTX has repaid nearly $6.2 billion after getting approval for its redistribution plan by the U.S. bankruptcy court.

The former crypto giant used to be a mainstay in the digital asset ecosystem till a CoinDesk expose in 2022 resulted in the downfall of Sam Bankman-Fried’s empire.

In 2023, Bankman-Fried was convicted on seven counts of fraud and conspiracy, and sentenced to 25 years in prison for orchestrating the $11 billion fraud. Although, according to a report, his sentence could be cut by 4 years due to “good conduct.”

FTX also said that it has received court approval to reduce its disputed claim reserve to $4.3 billion from $6.5 billion.

The exchange will distribute the cash through BitGo, Kraken, and Payoneer.