FTX creditors have begun to receive the second payouts from the defunct exchange’s recovery trust. On May 30, 2025 the distribution which followed the first round in February that covered the smaller claims went out. This time the larger claims being targeted which also marks the largest return of funds in a crypto bankruptcy to date.
Payments going out via Kraken and BitGo, which see most recipients get their money within 1 to 3 business days. Mostly in stablecoins like USDT and USDC which in turn provides that which is consistent in volatile markets.
John J. Ray III who is at the head of the FTX Recovery Trust reported that the milestone is a mark of the trust’s success and also of our ongoing effort to sort out what is left for FTX creditors.
FTX Creditors Receive Varied Recovery Percentages
FTX creditors see a range of different recovery rates for their claims. convenience claims will see a 120% recovery, for Dotcom Customers that is a 72% recovery we see, and for US customers 54% is what they will get. Also General Unsecured and Digital Asset Loan Claims will see a recovery of 61%.
This layered system which also includes legal priority and asset recovery progress. We see that the 120% pay out for Convenience Claims which goes beyond what was originally put forth, which in turn rewards the smaller claim holders and which also shows how far the recovery has come. But also we see that FTX creditors are still bringing up issues of distribution fairness and method.
FTX Creditors Struggle With Valuation And Jurisdiction Issues
In the case of FTX’s creditors have disputes over valuation methods. Distribution is based on crypto values at the time of the petition for bankruptcy not at present market rates. For many, which is to say for those with growing digital assets, this is a large issue.
Further in terms of geography, FTX creditors in 163 countries including China, Nigeria and Russia that at present are left out due to regulation which we have seen Kraken and BitGo impose. This is a large segment of our users which is affected.
KYC Issues And Market Reaction To Payouts
Approximately 392,000 FTX creditors are yet to pass the required KYC which is of a mandatory nature. Over $2.5 billion in claims are at risk should these people fail to prove their identity by June 1st. We have reported issues with the system but users are still able to reapply or to start the verification process over.
Crypto investors are paying close attention to the market action. Although there is a fear of sell off, funds have been put out back into the market. Also since the funds are in stablecoins, large price drops which in turn gives FTX’s creditors more financial flexibility.
