FTX creditors are set for another round of compensatory distribution as Kraken has started sending out mails that repayments will begin from May 30, 2025. This distribution will cover claims both below and above $50,000, as confirmed by Sunil Kavuri, a well-known representative of the FTX creditor.
FTX Past Payments
The previous payment cycle commenced on February 18, 2025 which targeted the “Convenience Class” of the creditors. The claim of this class was up to $50,000. Approximately $800 million was disbursed from a $1.2 billion that was set aside for this phase.
The distribution was channeled through Kraken and BitGo, with many creditors receiving their funds within one to three business days.
The Background of the Scandal
The repayment process stems from FTX’s collapse in November 2022, which revealed the misuse of $8-10 billion in customer funds. This scandal led to the conviction of founder Sam Bankman-Fried for wire fraud and conspiracy, resulting in a 25- year prison sentence. Under the leadership of John J. Ray III, FTX’s bankruptcy proceedings have focused on recovering assets and compensating creditors. To date, FTX has recovered billions in assets through lawsuits and asset sales.
The upcoming May distribution is part of a broader recovery plan expected to return between $14.5 billion and $16.3 billion to creditors. Analysts speculate that while most repayments will be in cash, some recipients may reinvest their funds into cryptocurrency markets, potentially influencing liquidity.
Despite progress, challenges remain for creditors. Many have faced delays due to legal complexities and procedural requirements such as KYC verification and tax form submissions.
Additionally, repayments are based on asset values from November 2022 rather than current market prices, which has sparked criticism among creditors seeking fair compensation.
This next phase marks another step toward restoring trust in the cryptocurrency ecosystem after one of its most significant collapse.
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