FTX to Start Creditor Payouts in 2025—Here’s What to Expect

FTX is finally paying back creditors, but there’s a catch—only those in the Convenience Class (claims up to $50,000) will be compensated, and all refunds will be in stablecoins. Under the restructuring plan, these creditors will receive 119% of their recorded claims, calculated at November 2022 asset values, plus 9% annual interest. No Bitcoin, no altcoins—just stablecoins.

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To claim their payouts, users must complete KYC verification, file tax documentation, and select a distribution platform. Available options include BitGo and Kraken, though regional restrictions apply, including in Ukraine.

The process must be completed via the official FTX portal.

FTX Leadership Speaks Out

John J. Ray III, chairman of the FTX liquidation committee, called the launch of payouts a critical step in the lengthy process of asset recovery. He noted that funds will be distributed to both retail and institutional investors, provided they comply with the outlined requirements. Meanwhile, FTX continues its efforts to reclaim lost and misappropriated assets.

Today's announcement reflects of the outstanding success of the recovery and coordination efforts of our team of professionals over the past 28 months. These efforts are ongoing and our focus remains on executing these distributions in accordance with our Plan while also continuing to pursue the recovery of outstanding assets,

Jonh stated.

FTX also issued a key notice—once the funds are transferred, the exchange will no longer be responsible for their final distribution. That responsibility falls entirely on the selected payout platform. If delays or issues occur, creditors must contact their provider directly. This move is intended to streamline the process and minimize disruptions to FTX’s customer service operations.

Scam Alerts and Delays in Compensation

FTX is warning users to stay sharp as scammers are taking advantage of the payout process. Fraudsters are sending fake emails, directing victims to phishing sites, and even embedding malware in links. To avoid falling victim, always verify emails, don’t click on suspicious links, and only communicate with FTX through official channels.

Related: Behind FTX’s Downfall: The Role of Sam Bankman-Fried’s Parents

While some creditors are now receiving payouts, others worry that their turn won’t come until March 2025 or later. Although this delay reflects the pre-planned phased nature of the restructuring, it has sparked frustration among those still waiting for compensation.