Creditors who are part of FTX’s bankruptcy are receiving their payments through their Kraken accounts during the initial distribution. The reimbursement of funds from FTX to approved claimants under $50,000 includes their complete initial funds alongside additional interest payments. Users have posted screenshots indicating they got extra funds than what FTX originally took from them.
Distribution Details
Blockchain tracking organization Arkham Intelligence verifies that the first distribution wave consists of $1.2 billion payments. The repayment process of small creditors delivers 119% of their original claim amount together with accrued interest. The payment disbursement uses US dollars sent through BitGo and Kraken. Users who traded through Kraken received fee credits which assisted them in the process.
Larger Creditors Must Wait
A substantial number of people who lost more than $50,000 must wait until 2025 Q2 to obtain their financial recovery. The total sum for all payments combined reaches an amount of $16 billion.
Recovery Progress
FTX filed for bankruptcy in November 2022 due to financial wrongdoing and fraud by founder Sam Bankman-Fried which resulted in his criminal conviction during 2023.The bankruptcy team has implemented two recovery methods which include the sale of company holdings and reaching settlements with different parties. The bankruptcy team exceeded their initial funding targets which enables them to provide complete repayment to smaller creditors.
Initial Payouts Begin
The recent milestone has provided financial relief to thousands of small creditors yet bigger creditors must hold on until further payments are made. The first successful distribution marks important advancements in the intricate process of resolving one of the biggest cryptocurrency failures.
