FTX, a bankrupt cryptocurrency exchange, has commenced its second phase of repayments to creditors by distributing over $5 billion to approved individuals and entities with claims. This payout follows an initial disbursement of $1.9 billion and signifies a significant step in the exchange's bankruptcy proceedings.

The defunct company confirmed that the second round of repayments is targeting eligible claims in specific categories and has started distributing funds to customers and creditors. The CEO of FTX, John Ray III, expressed satisfaction with the progress of returning cash to stakeholders and mentioned ongoing efforts to recover more funds and resolve outstanding claims.

The repayment process, managed by BitGo and Kraken, began immediately after the announcement and is anticipated to be completed within a few business days. Notably, the distribution for US claims has initiated, with international disbursements scheduled for a later date.

Different categories of FTX creditors will receive varying amounts based on their classification, with some receiving percentages of their eligible funds. However, the exchange has cautioned users about phishing scams related to the payout process and advised them to verify all communications to ensure security.

Industry experts are closely monitoring the repayments, anticipating a potential increase in cryptocurrency trading activity as recipients might quickly reinvest the stablecoins received into other digital assets. Market analysts believe that this liquidity injection could have a positive impact on altcoins, particularly as investor sentiment and regulatory clarity improve in various jurisdictions.