Kraken confirms second FTX repayment phase for claims over $50K
Kraken confirms second FTX repayment phase
Kraken has confirmed it will initiate the next round of FTX-related payouts on May 30, extending repayments to claimants with claims exceeding $50,000.
This marks the second phase of distributions following an initial round in February, which covered smaller claims of $50,000 or less, according to Crypto News.
FTX creditor representative Sunil revealed in a post on X that Kraken has begun notifying affected users via email. The upcoming disbursement will include both smaller claimants who have yet to receive their full repayment and larger creditors, including institutional investors, who have been awaiting their share of recovered funds.
Repayments to include 9% annual interest
FTX’s bankruptcy estate has earmarked approximately $16 billion for total creditor distributions. The first round of payments, which began on February 18, fully repaid approved Convenience Class claims, with small creditors receiving an additional 9% post-petition interest. Larger creditors will now receive similar payouts, including accrued interest.
The repayment process has faced significant legal and logistical challenges since FTX’s collapse in November 2022. The once-prominent cryptocurrency exchange, valued at $32 billion at its peak, filed for bankruptcy after it was revealed that its sister company, Alameda Research, had misappropriated customer funds.
FTX’s restructuring, led by CEO John J. Ray III, has focused on recovering assets through legal actions and liquidation efforts. The upcoming May 30 distribution represents a major step in compensating FTX’s larger creditors, with Kraken continuing its role in facilitating payments alongside digital asset security firm BitGo.
Earlier last year, FTX filed a lawsuit against Binance and its co-founder Changpeng Zhao, demanding the return of $1.76 billion, which FTX claims was fraudulently transferred by Binance.
