FTX Cuts $5B Repayment Checks—Some Creditors Score 120% Payouts (Yes, Really)

Bankruptcy court never looked so generous. The collapsed crypto exchange is wiring out billions—with a twist that’d make Wall Street blush.

Chaos pays (for some): While most bankruptcies leave creditors fighting over scraps, FTX’s oddball math means select users are cashing out at 120% of their claims. Cue the hedge fund managers suddenly pretending they ‘always believed in crypto.’

The catch? These jackpot payouts only apply to certain cash balances—not the bagholders still clutching worthless FTT tokens. Pro tip: Next time a billionaire promises ‘risk-free yields,’ maybe skip the Kool-Aid.

TLDR

• FTX just unleashed a $5 billion wave of repayments—former users are finally getting paid.

• BitGo and Kraken are delivering long-awaited funds to FTX claimants across multiple payout classes.

• Some users are seeing more than 100% returns, but others still want their crypto back, not cash.

• Billions in liquidated assets like Robinhood and Anthropic are fueling one of crypto’s biggest bankruptcy recoveries.

• Miss a step in onboarding or KYC, and you could miss out on the next FTX payout round.

FTX has begun its second phase of customer repayments following its Chapter 11 bankruptcy. Former users are now receiving part of a $5 billion distribution, with payments made through BitGo and Kraken. This payout reflects gains from recovered assets, equity sales, and strategic liquidations.

FTX Unlocks $5 Billion for Customer and Creditor Repayments

FTX Trading Ltd. and the FTX Recovery Trust have initiated distributions under their confirmed Chapter 11 plan. Creditors with allowed claims who met pre-distribution requirements started receiving payments on May 30, 2025. These distributions are processed by service partners BitGo and Kraken.

The distributions cover multiple claim classes with varying percentages according to the plan’s waterfall structure. Dotcom customers under Class 5A are receiving 72% of their allowed claim values. U.S. customers under Class 5B are receiving 54%, while unsecured and loan claims receive 61%.

Convenience class holders under Class 7 are receiving 120% with full principal and additional interest. Payments are expected to reach eligible users within three business days. FTX will announce further payment rounds and record dates in the coming months.

FTX Converts Equity Stakes Into Strong Recovery Payouts

FTX raised billions by liquidating stakes including holdings in Anthropic and Robinhood. These asset sales contributed to a recovery pool expected to total between $14.7 billion and $16.5 billion. The recovered value has allowed the estate to meet high repayment thresholds.

The plan returned up to 74% of the dollar value of user balances recorded in November 2022. Smaller claimants are expected to receive over 119% of their claim value across distributions. These figures exclude potential further returns from unresolved claims or pending asset recoveries.

Some users expressed concerns about fiat repayments. They argued that the crypto assets lost had significantly appreciated. Consequently, many would have preferred crypto returns rather than converted U.S. dollar payouts.

Customer Requirements and Platform Security Reminders Remain Ongoing

FTX has reminded customers to complete identity verification and tax documentation on the FTX claims portal. Users must also complete onboarding with either BitGo or Kraken to receive future payments. Detailed instructions remain available through the official portal.

The exchange has warned users to avoid phishing sites and unauthorized emails imitating official communications. The company emphasized that all instructions and updates will be shared through secure channels. Compliance with official guidelines ensures eligibility for the next round of payments.

Eligible creditors will only receive funds if they meet all procedural requirements by each record date. FTX will publish future payout schedules after verifying additional claims. These continuing efforts support FTX’s goal of fully resolving its creditor obligations.