FTX Creditors to Begin Receiving $5 Billion in Repayments Starting May 30
Nearly three years after the dramatic collapse of cryptocurrency exchange FTX, creditors will begin receiving repayments starting May 30, 2025. The $5 billion distribution, approved under the exchange’s bankruptcy proceedings, marks a significant milestone in one of the largest financial scandals in crypto history.
Approved distribution agents BitGo and Kraken have begun contacting eligible claimants, confirming that the first wave of repayments will be deposited into users’ accounts by the end of the month. These funds represent partial compensation for losses suffered during the exchange’s downfall in November 2022.
At the time, FTX was one of the most prominent platforms in the crypto ecosystem. Its sudden collapse followed revelations that founder Sam Bankman-Fried had misused billions of dollars in customer funds to cover losses at his affiliated hedge fund, Alameda Research. The resulting liquidity crisis led to a rapid bankruptcy filing and a global scramble to recover user assets.
Bankman-Fried was later convicted of fraud and conspiracy, bringing closure to what has since become one of the most high-profile financial crimes in the digital asset space.
Under the terms of the court-approved reorganization plan, customers with verified claims exceeding $50,000 are set to receive 72.5% of their approved claims in the initial cash distribution. Additional rounds will follow, covering the remaining 27.5% along with post-petition interest.
To access their funds, creditors must complete a series of steps on the official FTX claims portal. These include submitting know-your-customer (KYC) information, tax documentation, and selecting a designated distribution partner such as BitGo or Kraken.
Sunil Kavuri, one of the more vocal FTX creditor advocates, said he has been waiting for repayment since the collapse. Kavuri is reportedly owed approximately $2 million and had planned to use the funds to purchase a family home before the fraud disrupted his financial plans.
