As FTX continues its payback procedure, the next round of FTX creditor payments is set for May 30, 2025. This follows the first distribution, which began on February 18, focusing on smaller claims under the “Convenience Class.” The upcoming round will continue to address outstanding debts as part of the ongoing repayment process.
FTX asserts that the forthcoming reimbursement phase will settle authorized claims under Class 5 Customer Entitlement and Class 6 General Unsecured Claims. This covers clients who had money on the platform when it collapsed as well as other creditors, including traders and suppliers. If eligible for this payout, creditors must confirm their claims by April 11, 2025.
According to the exchange’s recovery strategy, at least 118% of their claim value will be paid to 98% of creditors in cash. Projected total payout falls between $14.5 billion and $16.3 billion.
Bitcoin exchanges Kraken and BitGo will help with repayments. Participating creditors are required to submit the necessary tax documentation, complete the Know Your Customer (KYC) verification process, and onboard with either Kraken or BitGo to receive their payments.
FTX has also cautioned consumers on possible phishing efforts passing for official correspondence. We advise consumers to exercise caution and verify any letters related to their claims.
Targeting creditors with claims of up to $50,000, the first reimbursement round is likely to be processed in one to three working days. Further rounds of payments are expected to send money back to other claim classes as FTX works at recovery.
Although many creditors are worried about getting their money back when FTX collapses in 2022, the continuous repayment schedule offers some comfort. After suffering financial losses from the failing exchange, some creditors might still be reluctant to reinvest in cryptocurrencies.
