FTX Begins $5 Billion Repayment to Users
- FTX Recovery Trust leads $5 billion payout to former users.
- Cash payments distributed via BitGo and Kraken systems.
- Market remains unaffected due to non-crypto distribution.
FTX Recovery Trust began distributing $5 billion to former FTX users on May 30, 2025, managed by BitGo and Kraken.
This payout mainly affects those with claims from the FTX bankruptcy, with all distributions executed in fiat currency.
FTX Recovery Trust Launches Major $5 Billion Payout
FTX Recovery Trust initiates a $5 billion payout to creditors as part of its Chapter 11 proceedings. This follows a $1.2 billion round that first addressed smaller claims. “Eligible creditors will receive their distributions via Kraken and BitGo, following confirmation of claims and completion of pre-distribution requirements.” Source
The payout is managed by BitGo and Kraken. These payments, completed in cash, stem from liquidated assets of the defunct trading platform.
Fiat Distribution Avoids Impact on Crypto Markets
The distribution delivers liquidity to former users but does not impact crypto markets directly. Payments are entirely in fiat, holding no influence on DeFi systems directly.
Community reactions vary, with some expressing dissatisfaction over cash payments, missing potential crypto gains since the bankruptcy filing date in 2022.
FTX Payout Compared to Mt. Gox Bankruptcy Claims
The process rivals other crypto bankruptcies, such as Mt. Gox, by addressing claims faster. Nonetheless, some users remain critical of the cash-only compensation.
Current practices suggest future recoveries will remain fiat-focused, likely continuing without reintroducing crypto into consumer holdings.
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