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According to Kraken, the next batch of FTX repayments will start to be distributed on May 30. This stage, which will cover both minor and major claims, is an important part of the continuous payout procedure.
According to a recent post on X by Sunil, an FTX creditor representative, Kraken has started emailing FTX users about the next payout round. The second stage of FTX claim disbursements, which covers claims over and under $50,000, has begun.
The first round of repayments began on February 18, targeting Convenience Class claims valued at $50,000 or less. Claimants in this category received full repayment, along with post-petition interest of 9% per year, with final distributions set to be completed by April 11. Meanwhile, larger investors, including institutional creditors and venture capital firms, had not yet received any payments.
Legal challenges and asset recovery efforts have slowed the process for larger claims. However, with the May 30 payout round, high-value claimants will start receiving their funds plus 9% annual interest. Approximately $16 billion has been allocated for total distributions.
FTX, which was once valued at $32 billion, collapsed in November 2022 after it was revealed that Alameda Research had used customer deposits to cover its losses. The crisis led to a mass exodus of funds, forcing FTX to halt withdrawals and file for bankruptcy.
In November 2023, Sam Bankman-Fried was convicted of fraud and conspiracy, while former executives Caroline Ellison and Gary Wang pleaded guilty and cooperated with authorities. Since taking over as CEO in November 2022, John J. Ray III has spearheaded efforts to recover lost assets, using lawsuits, real estate sales, and liquidation of FTX’s remaining holdings.
As FTX continues its bankruptcy resolution, the upcoming repayment round represents progress in repaying affected users. However, the process is far from over, with more legal and financial hurdles ahead.