FTX creditors will begin receiving a portion of their lost funds starting May 30, 2025. The distribution comes three years after FTX's collapse, which left thousands of customers unable to access their funds. BitGo and Kraken, approved distribution agents, are notifying clients that funds transferred from FTX will be deposited into their accounts by the end of the month (Source: TheStreet, May 23, 2025).
In November 2022, FTX, then the world's largest cryptocurrency exchange, declared bankruptcy. This followed revelations that founder Sam Bankman-Fried had misused billions in customer funds to cover losses at Alameda Research. Bankman-Fried was later convicted of fraud and conspiracy.
Creditors with eligible claims over $50,000 will receive 72.5% of their claim in the initial cash distribution. The remaining 27.5% and post-petition interest will be paid in subsequent rounds. Creditors must complete KYC and tax requirements on the FTX claims portal and select a distribution service provider to receive payouts.
Sunil Kavuri, an FTX creditor, stated he is owed approximately $2 million from the exchange since November 2022. He told TheStreet Roundtable that the fraud delayed his plans to buy a family home.
This article is based on our author's analysis of materials taken from the following resource: TheStreet.