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FTX begins $5B payouts with BitGo & Kraken 💸

FTX begins $5B payouts with BitGo & Kraken 💸

Source: theblock.co5/30/2025

Former users of the now-bankrupt FTX exchange are starting to receive payouts from the $5 billion distribution plan. This marks the second phase of FTX's bankruptcy payout strategy. BitGo and Kraken are assisting in the distribution. FTX aims to reimburse creditors with 74% of their previous dollar account value, with hopes to distribute between $14.7 billion and $16.5 billion eventually. While some welcome the payouts, others wish for crypto asset distributions due to market appreciation. The process also serves as a liquidity boost for potential alt seasons. Users should remain vigilant against phishing and scams. FTX began the payout on May 30, following a bankruptcy plan announced in November 2022.

FAQ

  • What is the FTX payout plan?

    FTX's payout plan involves distributing up to $16.5 billion to creditors, with former users receiving 74% of their account's dollar value.

  • Why are some users unhappy with the payout?

    Some users preferred 'in kind' crypto asset distributions, which have appreciated since FTX's collapse, over cash payouts.

  • Who are the distribution partners for FTX payouts?

    BitGo and Kraken are the appointed distribution partners for FTX's payout process.