After a turbulent bankruptcy in 2022, creditors of FTX finally receive long-awaited news. FTX announced it will start distributing over $5 billion to eligible creditors on May 30, 2025. The payout is part of the company’s Chapter 11 reorganization plan.
FTX to Repay Up to 120% via Bitgo and Kraken
FTX Trading Ltd. and the FTX Recovery Trust confirmed the second round of distributions will soon begin. Only creditors with approved claims who have completed all required steps are eligible. These steps include registering with one of the designated distribution partners: Bitgo or Kraken.
Payments will be processed starting May 30 and are expected to be delivered within three business days. Some classes of creditors may receive up to 120% of their original claim, depending on their classification under the restructuring plan. This indicates FTX has been able to recover more assets than many had expected.
This marks one of the largest payouts in crypto bankruptcy history. Following the platform’s spectacular collapse in November 2022, which saw billions in customer funds vanish, trust in the crypto market was severely damaged. With this repayment round, FTX attempts to restore some of that lost confidence.
For affected creditors, the announcement brings long-overdue relief. Many have been in limbo for over two years, unsure if they would ever see their funds again. Now, it appears that the resolution of the FTX bankruptcy is further along than most had hoped.
