Creditors of the defunct cryptocurrency exchange FTX, have begun receiving disbursements of their funds, a significant step in the complex bankruptcy proceedings following the company’s collapse in November 2022. In total, $16 billion are expected to be distributed among creditors.
Initial payouts come with 9% annual interest accrued since the exchange’s implosion and are being distributed to those with claims under $50,000. Multiple users on social media have reported receiving their payouts – with the interest included – with some even showing screenshots of their accounts.
The distribution aligns with the bankruptcy plan, which stipulates that creditors will receive approximately 119% of their adjudicated claim value. The value is consistent with what has been reported by users on social media.
On top of that Arkham Intelligence, a blockchain analytics firm, has corroborated these reports, citing outflows from FTX wallets as evidence of the ongoing disbursements. The firm estimates these initial payments will total approximately $1.2 billion.
FTX USERS RECEIVING FUNDS
Users with FTX claims of under $50,000 have started to receive funds today through distribution providers Kraken and Bitgo.
This wave of creditors represents approximately $1.2B in value. pic.twitter.com/SFGdsNOrBS
— Arkham (@arkham) February 18, 2025
FTX Creditor Payouts
This initial wave of repayments focuses on creditors with smaller claims. Those with claims exceeding $50,000 are slated to begin receiving their distributions in the second quarter of this year, with the total amount set to be distribute totaling $16 billion.
The repayments are being processed in U.S. dollars through both BitGo and Kraken. Screenshots circulating on Reddit indicate that Kraken is also providing trading-fee credits to users, a move interpreted as a mechanism to facilitate payouts without generating profit for the exchange.
The exchange’s collapse significantly affected the Solana ecosystem as the firm and its founder Sam Bankman-Fried were vocal proponents of the network. Since then, Solana has recovered and some of the value from the creditor payouts could flow onto it.
