FTX has started distributing $5 billion to its creditors, marking a significant move in the ongoing process to repay those affected by its 2022 collapse. This payout is the second large round managed by the FTX Recovery Trust, aimed at reimbursing creditors who have met all the necessary requirements.
Who Is Getting Paid?
The payout covers creditors in the Convenience and Non-Convenience Classes who completed identity verification, tax forms, and onboarding with FTX’s distribution partners, Kraken and BitGo. Creditors can expect to receive their funds within 1 to 3 business days after the distribution begins.
How Much Are Creditors Receiving?
Payout percentages vary by claim class, reflecting the bankruptcy plan’s structure:
| Claim Class | Payout Percentage |
| Dotcom Customer Entitlement Claims | 72% |
| U.S. Customer Entitlement Claims | 54% |
| Convenience Claims | 120% (more than full principal) |
| General Unsecured Claims | 61% |
| Digital Asset Loan Claims | 61% |
Notably, Convenience Claims receive more than 100%, meaning they get their full principal plus additional interest. Other classes receive partial reimbursements based on the value of claims as of the bankruptcy petition date.
Why Are Payouts Based on Old Values?
The repayment plan uses claim values from late 2022, when FTX filed for bankruptcy during a crypto market downturn. This means many creditors receive only a fraction of what their crypto assets would be worth today. Some creditors are unhappy because they get fiat or stablecoins instead of the original crypto tokens, which have appreciated since then.
What Has Happened So Far?
This $5 billion payout follows an earlier distribution in February 2025, when $1.2 billion was paid to creditors with claims under $50,000. The total recovery fund, including liquidated assets like stakes in Robinhood and Anthropic, is estimated between $14.7 billion and $16.5 billion.
Who Can’t Get Paid?
Creditors in certain countries, including Egypt, Iran, Russia, and Pakistan, are excluded due to legal restrictions. This limits the pool of eligible recipients.
What Could This Mean for Crypto Markets?
The influx of billions into the market could lead to price swings if creditors sell or trade their reimbursements on retail exchanges. Investors and analysts are watching closely for potential volatility.
What Should Creditors Do Next?
Creditors must complete all required steps with Kraken or BitGo to receive their payments. FTX will announce future payout rounds as more claims are verified. Staying compliant with instructions is crucial to avoid missing out.
Key Takeaways
- FTX has begun a $5 billion payout to creditors who completed all requirements.
- Payouts vary by claim class, with Convenience Claims receiving full principal plus interest.
- Repayments are based on claim values from the 2022 bankruptcy petition date.
- Some creditors are unhappy about receiving fiat instead of crypto.
- The payout could cause crypto market volatility.
- Creditors must complete verification steps to get paid.
FAQs
Q: Who is eligible for the payout?
- A: Creditors in Convenience and Non-Convenience Classes who completed verification and onboarding.
Q: How are payouts delivered?
- A: Through Kraken and BitGo.
Q: Why aren’t payouts based on current crypto prices?
- A: Because the bankruptcy plan uses claim values from the 2022 petition date, during a crypto downturn.
Q: Could this affect crypto prices?
- A: Yes, large payouts could cause market volatility.
Q: Are all former FTX users eligible?
- A: No, some countries are excluded due to legal restrictions.
Q: How do I file a claim?
