Kraken Readies for Next Round of FTX Disbursements, Including $50K Claims

Kraken has announced that it will move forward with the next phase of FTX-related creditor repayments on May 30, expanding distributions to claimants with claims exceeding $50,000.

This follows an initial round in February, which addressed smaller claims of $50,000 or less.

Kraken Expands FTX Repayments to Larger Creditors in Next Phase

In a post on X, FTX creditor representative Sunil stated that Kraken has begun notifying affected users via email.

The forthcoming payouts will include both smaller claimants who have not yet received their full compensation and larger creditors, including institutional investors, who have been awaiting their share of the recovered funds.

FTX Claims Distribution
Distributor: Kraken@krakenfx has started sending out emails
to FTX customers confirming the
Next FTX distribution
May 30, 2025
Claims <$50k and Claims> $50k
are included in this distribution pic.twitter.com/nVjF4YPI94

— Sunil (FTX Creditor Champion) (@sunil_trades) March 6, 2025

FTX initially revealed the distribution plan on February 7, indicating that repayments to holders of approved claims in the Convenience Classes would commence on February 18.

Payments have been facilitated through both Kraken and BitGo, with Kraken also providing trading fee credits to ensure it does not profit from the process.

FTX Repayments: February 18, 2025
Funds available from 10am ET
FTX Claims < $50k
FTX Creditors in the Bahamas process have email confirmation that repayments will start on February 18, 2025
9% interest per annum from November 11, 2022 pic.twitter.com/FrmDN4qiK7

— Sunil (FTX Creditor Champion) (@sunil_trades) February 4, 2025

The bankrupt exchange’s assets have allocated approximately $16 billion for creditor distributions.

The first round of repayments fully covered approved Convenience Class claims, with smaller creditors receiving an additional 9% post-petition interest.

The second phase will now extend similar payouts to larger creditors, including accrued interest. The compensation process has encountered legal and logistical challenges since FTX’s collapse in November 2022.

The exchange, once valued at $32 billion, filed for bankruptcy following revelations that its sister company, Alameda Research, had misappropriated customer funds.

Under the leadership of CEO John J. Ray III, FTX’s restructuring has focused on asset recovery through legal actions and liquidation efforts.

The upcoming May 30 distribution represents another step in the process, with Kraken and BitGo continuing to facilitate creditor payments.

FTX Creditors Plan to Reinvest Payouts, Indicating Confidence in Crypto

The collapse of FTX remains one of the largest financial fraud cases in U.S. history.

After misappropriating customer funds to cover losses at its sister firm, Alameda Research, the exchange faced a liquidity crisis and filed for Chapter 11 bankruptcy on November 11, 2022.

Since then, creditors have been engaged in legal disputes, seeking to recover their lost funds. Now, after more than two years of negotiations and asset recovery efforts, FTX’s bankruptcy estate is preparing to reimburse creditors.

This milestone provides relief to thousands of affected investors, although uncertainties persist for those with claims exceeding $50,000. Further updates are anticipated as the estate continues working to maximize recoveries.

While this signifies a turning point, its impact extends beyond mere compensation. According to a survey conducted by NFTevening and Storible on February 19, the majority of creditors (79%) intend to reinvest their repayments into crypto.

A recent survey found that 79% of FTX creditors plan to reinvest their repayments in crypto, with 62% specifically targeting Solana despite recent market volatility.#FTX #Solana $SOLhttps://t.co/aD882BkwSq

— Cryptonews.com (@cryptonews) February 21, 2025

The study, conducted via Prolific, surveyed 1,016 FTX creditors who met specific criteria, such as holding at least 10% of their portfolio in Solana (SOL) or owning $100 worth of SOL for over a year.

Despite recent market fluctuations concerning Solana, including events like the controversial Libra meme coin launch and the Meteora scandal, Solana remains a preferred choice.

According to the survey, 62% of respondents plan to purchase SOL with their payouts, while 44% wish to invest in Solana-based projects.

Additionally, 71% of creditors indicated they would hold or acquire more SOL if its price falls below $145, demonstrating long-term confidence in its growth potential.

This trend suggests that many creditors view the downturn as a buying opportunity rather than an exit from the market.

With billions set to re-enter the crypto ecosystem, the upcoming reimbursements may provide a new wave of liquidity, potentially driving further market growth.

The post Kraken Prepares for Next Round of FTX Payouts, Including $50K Claims appeared first on Cryptonews.