FTX has officially announced the timeline for its next round of repayments to creditors, following the completion of its first round on February 18, 2025.
According to an official statement from FTX, the next repayment distribution will take place on May 30, 2025, for holders of approved claims under Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims. This includes customers who had assets on the platform when it collapsed, along with vendors, trading partners, and other creditors. as well as
Creditors Must Verify Claims Before April 11 Deadline
Creditors must verify their claims before the April 11 record date to qualify for the upcoming repayment. Any claims that are not verified by this date will not be included in the May payout.
According to FTX creditor and advocate Sunil Kavuri, the May round of repayments will be available to creditors with claims above $50,000. These creditors must select a distribution agent by April 11 to process their claims.
FTX has projected that 98% of creditors will receive at least 118% of their claim value in cash under the recovery plan. In May 2024, the company estimated the total payout amount to range between $14.5 billion and $16.3 billion.
How Creditors Can Receive Their Funds
FTX has partnered with Kraken and BitGo to facilitate the repayments. To ensure smooth processing, creditors must:
- Complete Know Your Customer (KYC) verification
- Submit the required tax documentation
- Onboard with either BitGo or Kraken
The company has also warned users of phishing scams, cautioning them to be vigilant against fraudulent emails and fake communications impersonating FTX.
FTX’s First Round of Repayments Successfully Processed
The first round of repayments, which started on February 18, 2025, was designated for “Convenience Class” creditors—those with claims up to $50,000. These creditors were expected to receive their payments within one to three business days after approval.
“FTX appreciates our customers and creditors’ patience and collaboration throughout this complicated process,”
said John J. Ray III, who is in charge of managing the funds recovered from FTX.
“Our work is not over—we intend to continue our recovery efforts and return funds to additional claim classes.”
Impact on the Crypto Market: Bitcoin and Ethereum Decline
The upcoming FTX repayments have sparked concerns within the crypto market, particularly regarding Bitcoin and Ethereum prices. With billions of dollars set to be distributed, the influx of funds could lead to increased selling pressure from creditors who have been without access to their money for over two years.
At the time of writing, the crypto market has fallen 2.1% in the past 24 hours, with Bitcoin and Ethereum experiencing notable price declines.
Many creditors have already sold their claims to third parties over the past two years. According to FTX creditor advocate Mr. Purple, who spoke with Cointelegraph, many claimants may hesitate to reinvest in crypto due to the trauma of the FTX collapse and their urgent need for liquidity.
Several experts believe that Bitcoin and Ethereum prices could experience short-term fluctuations as former creditors liquidate their assets. However, others argue that the impact will be minimal in the long run, as the market has already priced in these distributions.
While some FTX creditors may re-enter the market, others could use the recovered funds for personal financial stability instead of reinvesting in crypto. This uncertainty has created speculation about potential market volatility in the coming months.
Crypto traders and investors will closely monitor the impact of these FTX repayments on major digital assets like Bitcoin and Ethereum, as the crypto space continues to recover from the fallout of FTX’s collapse in 2022.
Related: FTX Clarifies: Court Has Not Approved Backpack’s Acquisition of EU Arm
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
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