Cryptocurrency exchange Kraken has announced the start of the second round of payouts to FTX creditors on May 30, covering both large and small claims.
FTX Payout Round Two
The second payout phase for FTX creditors begins on May 30, covering claims both under and over $50,000. FTX creditor representative Sunil revealed that Kraken has notified eligible FTX users about the upcoming distribution. The prior round mainly addressed claims valued at $50,000 or less, promising full repayment by April 11.
FTX Bankruptcy History
FTX, previously valued at $32 billion, filed for bankruptcy in November 2022 following the misuse of customer funds, leading to massive withdrawal requests. Former CEO Sam Bankman-Fried was convicted of fraud in November 2023.
FTX's Future After Collapse
Since the company's downfall, John J. Ray III has taken over as CEO, spearheading legal efforts to recover lost assets. These efforts include real estate sales and liquidation of remaining holdings, marking a crucial step toward creditor repayment.
The second round of FTX creditor payouts represents a significant step in repaying debts and restoring the company's financial stability following its collapse.
