FTX’s creditors are set to receive a portion of their lost funds beginning on May 30, 2025. BitGo and Kraken, both approved distribution agents, have begun reaching out to clients to confirm that funds transferred from FTX will be deposited into users’ accounts by the end of the month.
This development comes three years after FTX’s dramatic downfall, which left thousands of customers worldwide locked out of their cash and cryptocurrency holdings. In November 2022, FTX, once the largest cryptocurrency exchange globally, collapsed following revelations that founder Sam Bankman-Fried had used billions of dollars in customer funds to cover losses at his hedge fund, Alameda Research.
The subsequent bankruptcy filing by FTX was due to a liquidity shortfall, with investigations uncovering widespread fraud, mismanagement, and a lack of internal controls. Bankman-Fried was ultimately convicted of fraud and conspiracy, marking one of the most significant financial crimes in the history of cryptocurrency.
Creditors seeking to claim their share of the funds must log in to the FTX claims portal, complete Know Your Customer (KYC) and tax requirements, and select a distribution service provider such as BitGo or Kraken. Upon completing these steps, they can access information on their scheduled distribution amounts and receive payments.
The court-approved reorganization plan stipulates that claimants with eligible claims exceeding $50,000 will receive 72.5% of their claim in the initial cash distribution. The remaining 27.5% and post-petition interest will be disbursed in subsequent distribution rounds.
One such creditor, Sunil Kavuri, an FTX creditor activist, shared with TheStreet Roundtable that he is owed approximately $2 million from the defunct exchange and has been awaiting payment since November 2022. The FTX fraud has unfortunately delayed Sunil’s plans to purchase a family home.
For more information on claiming a share of the $5 billion payout commencing on May 30, 2025, readers can refer to TheStreet’s article “FTX creditors: Here’s how to claim your share of the $5B payout starting May 30,” published on May 23, 2025.
