FTX Launches Refunds—First Payouts Set to Arrive
After more than two years of waiting, FTX customers are finally beginning to receive their payouts.
On Tuesday, February 18, 2025, FTX asset managers announced that payment distributions have begun. They stated that the first transfers should be delivered to clients within one to three business days via BitGo and Kraken platforms.
This follows the October 2024 decision by a Delaware court to approve a repayment plan guaranteeing that 98% of creditors will receive at least 118% of their claimed amounts in cash. The initial tranche covers claims up to $50,000, with additional payments scheduled for April 11 and May 30.
We are pleased to commence initial distributions today and set the timeline for our next distribution. FTX appreciates our customers and creditors' patience and collaboration throughout this complicated process. Our work is not over – we intend to continue our recovery efforts and returning funds to additional claim classes,
said John J. Ray III, CEO of FTX Debtors and administrator of the recovery plan.
Despite the encouraging news, the process has generated considerable friction among creditors. Some, including Sunil Kavuri, the lead representative for FTX’s largest creditor group, are critical of the decision to distribute funds in fiat rather than cryptocurrency. At the time of the bankruptcy in November 2022, bitcoin and ether were trading at much lower levels than they are now—a disparity that might have resulted in significantly higher gains for clients had the payouts been made in crypto.
Сheck out: FTX to Start Creditor Payouts in 2025—Here’s What to Expect
In its first phase, the payout plan will release around $1.2 billion, with $800 million already earmarked for client distributions. Nevertheless, as many claims were offloaded to investment funds focused on debt buybacks, some clients only recovered a modest share of their lost funds.
FTX’s collapse in 2022 stands as one of the most profound shocks to the cryptocurrency landscape, leaving thousands of investors with multi-billion dollar losses. The former head of the exchange, Sam Bankman-Fried, was condemned to 25 years in prison for fraud and money laundering conspiracy, while his associate, ex-Alameda Research CEO Caroline Ellison, was sentenced to two years behind bars.
Even as the resumption of payouts brings a glimmer of hope, Sunil Kavuri cautions former FTX clients against the risks of speculative trading in meme tokens, particularly within the Solana ecosystem.
Read on: LIBRA Token Scandal: Did Argentina’s President Milei Back a Meme Coin?
The rollout of FTX refunds marks a major step toward restoring balance for creditors. Nevertheless, the effectiveness of this process and the future of the remaining unpaid assets remain subjects of concern.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
