FTX begins second round of payments to creditors
FTX begins second creditor payout round, distributing over $5 billion
FTX has initiated its second round of creditor repayments, distributing over $5 billion to eligible claimants who met pre-distribution requirements.
According to a May 31 announcement, payouts will be processed through Kraken and BitGo, with recipients expected to see funds in their accounts within one to three business days, reports Cryptopolitan.
The breakdown includes a 72% payout for Dotcom Customer Entitlement Claims, 54% for U.S. claims, and 61% each for General Unsecured and Digital Asset Loan Claims. Convenience Class claimants are set to receive 120%, the highest among all categories.
Critics raise concerns over outdated crypto valuations
Despite the sizable repayment figures, some creditors remain frustrated that reimbursements are calculated using November 2022 crypto prices. Bitcoin, for example, was trading at around $20,000 at the time of FTX’s collapse but is now worth over $100,000. This discrepancy has led to claims that many creditors are effectively receiving only a fraction of their original holdings’ current value. Sunil Kavuri, a vocal FTX creditor, previously petitioned the court for repayments based on market prices, but the request was denied. He argues that this undermines fairness and limits real recovery for customers.
Geopolitical restrictions leave many creditors locked out
Access to payouts has also become a contentious issue, with users in 163 countries—including China, Iran, and Russia—unable to receive funds due to restrictions on Kraken and BitGo. China alone accounts for roughly 8% of FTX’s global user base, making the exclusion significant.
Critics argue that the inability to reach these users highlights the uneven impact of jurisdictional regulation on global crypto participation. While FTX CEO John J. Ray III praised the distribution as a sign of recovery progress, the broader fallout underscores continued challenges in resolving cross-border crypto bankruptcies.
Recently we wrote that Barack and Michelle Obama’s production company, Higher Ground, is developing a Netflix miniseries titled "The Altruists", centered around FTX executives Sam Bankman-Fried and Caroline Ellison.
