FTX, in partnership with Kraken and BitGo, started the repayment of $5 billion to creditors on May 30, 2025, marking an important stage in the bankruptcy process.
Start of Repayment Process
The repayment process commenced as scheduled with distribution managed by Kraken and BitGo. Payments are expected to be processed within 1 to 3 days, covering major creditor classes.
Criticism and Consequences
Certain creditors, such as Dotcom and U.S. customers, are set to receive significant claim percentages of 72% and 54%, respectively. However, criticisms have arisen regarding the repayments being made in fiat currency rather than original crypto assets. The FTX collapse in November 2022 remains a significant historical event.
Outlook for Creditors
Expert opinions highlight the efficiency of the repayment process while stressing the importance of meeting pre-distribution requirements. Creditors who fail to complete necessary KYC procedures risk missing out on current and future payout rounds. Successful asset liquidation, including stakes in companies like Anthropic and Robinhood, has facilitated these payouts.
The $5 billion repayment to creditors by FTX represents a significant step in the post-bankruptcy recovery process, with close attention to the implications for the cryptocurrency market.
