Anushka Basu
2 min read
FTX's creditors will receive a share of their lost funds starting May 30, 2025. BitGo and Kraken — two of the approved distribution agents—are emailing clients to confirm that funds transferred from FTX will be deposited into users' accounts by the end of the month.
This announcement occurred three years after FTX's downfall, when thousands of customers worldwide were locked out of their cash and crypto holdings.
In November 2022, FTX, the previous largest cryptocurrency exchange in the world, collapsed after it became clear that its founder, Sam Bankman-Fried, had secretly used billions of dollars in customer money to pay for losses at his hedge fund, Alameda Research.
FTX filed for bankruptcy amid a liquidity shortfall before investigators found widespread fraud, mismanagement, and a lack of internal controls.
Bankman-Fried was eventually convicted of fraud and conspiracy, making the case one of the most prominent financial crimes in the annals of crypto.
Creditors should log in to the FTX claims portal, complete KYC and tax requirements, and select a distribution service provider like BitGo or Kraken. Once these steps are completed, they can view their scheduled distribution amounts and receive payouts.
The court-approved reorganization plan specifies that those with eligible claims over $50,000 will receive 72.5% of their claim in the first cash distribution. Customer payments for the remaining 27.5% and post-petition interest will occur in additional distribution rounds.
An FTX creditor, Sunil Kavuri, an FTX creditor activist, told TheStreet Roundtable that he is owed about $2 million from the now-defunct exchange and has been waiting on his payment since November 2022. Sadly, the FTX fraud forced Sunil to delay buying a family home.
FTX creditors: Here's how to claim your share of the $5B payout starting May 30 first appeared on TheStreet on May 23, 2025
