Key Takeaways

• The FTX Recovery Trust began its second round of creditor payments on May 30th, 2025, totaling $5 billion.

• Distribution percentages vary by claim type, with Convenience Claims receiving 120% and U.S. Customer Claims receiving 54%.

• Kraken and Bitgo are managing the disbursements, expected within 1 to 2 business days.

• The reimbursement plan remains controversial, as it values claims at 2022 market prices, not 2025 levels.
  
• Over 160 countries have been deemed ineligible for creditor reimbursements, sparking further disputes.

Breakdown Of Second-Round Distributions

The payout marks a major step in the ongoing bankruptcy proceedings following the collapse of the once-prominent cryptocurrency exchange, FTX.

FTX Repayments Details

Source: X (@sunil_trades)

According to an official announcement dated May 28th, the second round of payments includes disbursements across multiple creditor classes. Each class is receiving a distribution based on predefined reimbursement percentages.

Distribution Classes & Percentages

• Dotcom Customer Entitlement Claims – Receiving a 72% distribution.

• US Customer Entitlement Claims – Receiving a 54% distribution.

• Convenience Claims – Receiving a 120% distribution.

• General Unsecured Claims – Receiving a 61% distribution.

• Digital Asset Loan Claims – Receiving a 61% distribution.

These distributions are being handled by official distribution partners Kraken and Bitgo, with recipients expected to receive their claims within 1 to 2 business days.

Impact On The Crypto Market

The redistribution of funds to FTX’s creditors is being closely monitored by both investors and market analysts. There’s a prevailing concern that the influx of liquidity could create short-term price volatility across the crypto markets.

If a significant portion of these funds is sold or exchanged on retail platforms, it could result in downward price pressure on key digital assets like Bitcoin (BTC) and Ethereum (ETH).

Lessons From The First Payout Round

FTX’s first creditor payout, totaling $1.2 billion, was distributed back in February 2025. This round was directed at recipients with claims under $50,000.

According to Alvin Kan, COO of Bitget Wallet, a notable portion of these funds appeared to be reinvested back into the crypto markets, potentially fueling price rebounds in Q1 2025.

The Controversy Behind The Reimbursement Plan

Not all creditors are satisfied with the reimbursement plan put in place by the FTX Recovery Trust. Some have called it unfair, particularly because of the valuation methodology used to determine how much each creditor would receive.

Legal Documents Stating How Much FTX creditors Would Be Receiving

Source: Sunil Kavuri

Creditor Disputes & Legal Complaints

In September 2024, well-known FTX creditor Sunil Kavuri criticized the court’s ruling, which stipulated that reimbursement would be based on asset values at the time of the bankruptcy filing, not current market prices.

This decision was of the utmost significance, as it resulted in creditors receiving only 10% to 25% of the current value of their crypto holdings.

Market Conditions At The Time of Filing

To put the disparity in perspective, the FTX bankruptcy petition was filed in November 2022, during the depths of the crypto winter. At the time, Bitcoin was trading at approximately $16,000, compared to over $100,000 in May 2025.

Geopolitical Restrictions On Reimbursements

Adding to the controversy is the issue of geographical ineligibility. As of February 2025, it was revealed that creditors in 163 countries would not be eligible for reimbursement. This includes residents from:

• Egypt.
• Iran.
• Russia.
• Greenland.
• Pakistan.
  
  

This exclusion has drawn criticism from global investor groups who argue that such restrictions create a two-tiered system that unfairly penalizes certain individuals based on nationality or regional legal frameworks.

FAQ

What Is The FTX Recovery Trust?

The FTX Recovery Trust was established during bankruptcy proceedings to oversee the distribution of recovered assets to former users and creditors of the defunct exchange.

Who is eligible for the second round of payments?

Creditors who fall into the Convenience and Non-Convenience Classes and have completed all pre-distribution requirements are eligible for the May 2025 payouts.

How long does it take to receive the payout?

According to official sources, Kraken and Bitgo will deliver the funds within 1 to 2 business days of the distribution date.

Why are some creditors getting more than 100%?

Convenience Claims are receiving 120% because they typically involve small, low-value claims that are easier to settle quickly and with a premium to encourage early resolution.

Why is there controversy about the valuation date?

The core issue is that claims are being valued as of November 2022, when crypto prices were at multi-year lows. Many creditors argue that they are being shortchanged due to this outdated valuation.