FTX has begun its second round of creditor repayment, distributing over $5.4 billion to eligible claimants

Bankrupt cryptocurrency exchange FTX has begun its second round of creditor repayment, distributing over $5.4 billion to eligible claimants starting May 30, 2025. This follows an initial $1.2 billion payout in February to creditors with claims under $50,000.

Distribution Details:

• Dotcom Customer Entitlement Claims: 72% of the claim value.
• U.S. Customer Entitlement Claims: 54% of the claim value.
• General Unsecured and Digital Asset Loan Claims: 61% of the claim value.
• Convenience Claims (smaller claims): 120% of the claim value.

Eligible creditors are receiving funds through custodial partners Kraken and BitGo, with most payments expected within one to three business days.

FTX's repayment plan, approved by a U.S. bankruptcy court in October 2024, aims to return between $14.7 billion and $16.5 billion to former customers, covering approximately 98% of claims.

The plan calculates repayments based on the U.S. dollar value of assets as of November 2022, the time of FTX's bankruptcy filing. This approach has led to dissatisfaction among some creditors, as it does not account for the significant appreciation in cryptocurrency values since that time.

The funds for these repayments have been sourced from FTX's $11.4 billion in cash reserves, bolstered by asset recoveries and strategic sales, including stakes in companies like Robinhood and Anthropic.

FTX's former CEO, Sam Bankman-Fried, was convicted of fraud charges in 2023 and sentenced to 25 years in prison in 2024.

The impact of these repayments on the cryptocurrency market is being closely monitored, as the influx of funds could influence market dynamics depending on how recipients choose to utilize their recovered assets.

Summary FTX Creditor Repayment Update – June 2025

• Second Distribution: FTX has begun its second round of repayments, distributing $5.4 billion to creditors as of May 30, 2025.
• Cash Reserves: Payments are being made from $11.4 billion in cash FTX currently holds.
• Future Distributions: Additional payouts will be made, with timelines to be announced “in due course.”
• Court-Approved Plan: In October 2024, a U.S. bankruptcy court approved a plan to return between $14.7 billion and $16.5 billion to former customers and creditors.

Repayment Breakdown

• Dotcom Customer Claims: 72%
• U.S. Customer Claims: 54%
• General Unsecured/Digital Asset Loan Claims: 61%
• Convenience Claims (≤$50,000): 120% (already paid in February 2025)

Important Notes

• Valuation Date: Repayments are based on crypto prices from November 2022, the date of FTX’s bankruptcy, not current market value.
• Payout Method: Distributions are processed via custodians like Kraken and BitGo, typically received within 1–3 business days.