Defunct crypto exchange FTX has initiated a new round of repayments exceeding $5 billion to individuals who lost money when the company went bankrupt, as announced to eligible customers and investors.
(1/3) FTX today announced that it has commenced the Second Distribution of more than $5 billion to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements.
— FTX (@FTX_Official) May 30, 2025
How the Debacle Happened
FTX, once one of the largest cryptocurrency exchanges founded by Sam Bankman-Fried (SBF), gained popularity worldwide. However, in November 2022, it was discovered that the exchange had misappropriated customer funds and was facing significant financial difficulties. The company went bankrupt almost overnight, leaving many users without access to their funds.
Thereafter, the company’s executives, including SBF, his girlfriend, and the former Alameda Research CEO, Caroline Ellison, were charged and sentenced to twenty-five years and two years behind bars, respectively.
After the collapse, a new team led by bankruptcy expert John J. Ray III took over. Their job has been to recover money and pay back those affected. The second repayment phase is now being carried out using trusted crypto platforms like BitGo and Kraken. Depending on the type of claim and the value of the assets at the time of the collapse, people may receive what they are owed.
$5 Billion Repayment to Qualified Creditors
To qualify for future distributions, customers and other creditors must complete a few essential steps before each distribution record date. They are expected to log in to the FTX Customer Portal, complete the Know Your Customer (KYC) identity verification process, submit the required tax forms, and onboard with either BitGo or Kraken. The platform will provide step-by-step instructions on the portal.
The company has also warned users to be cautious, as scammers may take advantage of this opportunity to send fake emails and create websites that appear to be the FTX Customer Portal. Only use the official site and follow instructions from verified communication channels.
Commenting on the recent repayments, John J. Ray III, Administrator of the FTX Recovery Trust, said:
“Today’s announcement represents continued progress returning cash to FTX’s customers and creditors. I am proud of the outstanding success of the recoveries to date. Our work continues on recovering more for creditors and resolving outstanding claims.”
Meanwhile, as the company’s new management works to recover assets and repay creditors, Bankman-Fried’s sentencing represents a significant step toward accountability in the case.
