FTX creditors are set to receive another round of repayments, with cryptocurrency exchange Kraken confirming that distributions will begin on May 30.
This second round of payouts will cover small and large claims, including those exceeding $50,000, as revealed by FTX creditor representative Sunil in an X post.
According to Sunil, Kraken has emailed eligible FTX users about the upcoming distribution. This follows the initial repayment round, which started on February 18 and focused on Convenience Class claims valued at $50,000 or less. Those smaller claimants are expected to receive full repayment, along with 9% post-petition interest per annum, by April 11.
However, larger creditors—institutional investors and venture capital firms—have not received payouts due to ongoing legal disputes and asset recovery efforts. The upcoming May 30 distribution marks a significant step toward resolving these claims, with approximately $16 billion allocated for total repayments.
Like the first round, Kraken will process these payments and offer trading fee credits to ensure it does not profit from the distributions. Additionally, clients will receive bonus credits of up to $105, depending on the size of their recovered funds, to further offset trading fees. These credits will be available in their Kraken accounts once payouts are processed.
FTX, once valued at $32 billion, collapsed in November 2022 after it was revealed that its affiliated trading firm, Alameda Research, had misused customer funds to cover its financial losses. The revelation triggered mass withdrawal requests that FTX could not fulfil, ultimately leading to its bankruptcy.
Former CEO Sam Bankman-Fried was convicted of fraud and conspiracy in November 2023, while other top executives, including Caroline Ellison and Gary Wang, pleaded guilty and cooperated with authorities. Since FTX’s downfall, John J. Ray III took over as CEO in November 2022 and has led the company’s efforts to recover lost assets through legal actions, real estate sales, and liquidation of remaining holdings.
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