The FTX Recovery Trust has launched a second round of payments to its creditors, distributing a total of $5 billion beginning May 30.
This follows the completion of pre-distribution requirements by eligible claimants in the Convenience and Non-Convenience Classes.
Breakdown of Distributions
The payout includes various categories of claims.
Dotcom Customer Entitlement Claims will receive a 72% distribution.
U.S. Customer Entitlement Claims are being reimbursed at 54%.
Convenience Claims will be fully covered and then some, with a 120% distribution rate.
Additionally, General Unsecured Claims and Digital Asset Loan Claims are set to receive 61% distributions.
Payments are being facilitated through crypto platforms Kraken and Bitgo, with expected delivery within one to two business days.
Ongoing Market Concerns Amid Reimbursements
FTX’s creditor reimbursements are under close scrutiny by crypto investors.
Market participants are wary that sudden inflows of liquidity from these repayments might lead to asset offloading on retail exchanges, potentially introducing new waves of volatility.
This follows ongoing concerns about how such distributions might affect the broader market.
February’s Initial Payout and Reinvestment Hopes
The first reimbursement round occurred on February 18.
That distribution totaled $1.2 billion and was aimed at creditors with claims under $50,000.
At the time, Bitget Wallet COO Alvin Kan said a “significant portion” of those funds could find their way back into the crypto markets.
His statement raised expectations that these payouts might translate into increased trading activity and investment.
Controversy Over Valuation Dates
Despite the substantial figures, the reimbursement process remains contentious.
In September 2024, FTX creditor Sunil Kavuri revealed that the court ruled for creditors to be reimbursed based on the value of their assets at the petition filing date.
This has led many to receive only 10%–25% of the current market value of their holdings.
Kavuri criticized the move, stating, “Crypto holders are not whole at petition date prices as confirmed by the debtors, the United States Department of Justice, and Judge Kaplan.”
Timing Disadvantage Hits Creditors Hard
The timing of the petition filing, during the depths of the 2022 crypto winter, compounded the impact.
At that time, Bitcoin hovered around $16,000, far below its current valuation.
As a result, creditors effectively lost the opportunity to reclaim the full market value of their digital assets.
Geopolitical Gaps in Reimbursements
Kavuri also raised concerns in February 2025 about exclusions in the reimbursement eligibility list.
Residents in 163 countries, including Egypt, Iran, Russia, Greenland, and Pakistan, have been ruled ineligible for repayment.
This international discrepancy has drawn additional criticism from stakeholders who feel the payout scheme lacks global fairness.
As the second round of payments proceeds, the debate continues over whether the reimbursement process is truly equitable and what ripple effects it might trigger across the digital asset markets.