Kraken confirmed it will begin the next round of FTX payouts on May 30, covering claims both below and above $50,000.
According to FTX creditor representative Sunil’s recent post on X, Kraken has begun sending emails to FTX users, confirming that the next round of FTX payout distribution will take place on May 30. This distribution, which marks the second round of FTX repayments, will cover claims both below and above $50,000.
The now defunct crypto exchange FTX announced on Feb. 7 that initial distributions to holders of allowed claims in the Plan’s Convenience Classes would begin on Feb. 18, with repayments facilitated through BitGo and Kraken. Kraken even provided trading fee credits alongside the payouts to avoid profiting from the distribution process.
The first repayment round, which started on Feb.18, covered approved Convenience Class claims valued at $50,000 or less. Small claimants will receive full repayment plus post-petition interest of 9% per annum by April 11. Larger claimants (with claims valued above $50,000), including institutional investors and VC firms, have been not been issued any repayments as of yet.
Complex legal disputes and asset recovery efforts have delayed the distribution to larger investors. But with the next repayment round slated for May 30, larger investors will start receiving their funds (+9% interest accrued per annum), with roughly $16 billion earmarked for total distributions.
FTX, once valued at $32 billion, collapsed in Nov. 2022 after it was revealed that Alameda Research had misused customer funds to cover its own losses. A wave of withdrawal requests followed, but FTX could not meet them. The exchange halted withdrawals and filed for bankruptcy. FTX’s founder, Sam Bankman-Fried, was convicted on fraud and conspiracy charges in Nov. 2023. Other former executives, including Caroline Ellison and Gary Wang, pleaded guilty and cooperated with authorities. John J. Ray III took over as CEO in Nov. 2022 and has led efforts to locate and recover FTX’s lost assets through lawsuits, real estate purchases, and liquidations of FTX’s remaining assets.
