One big step in the process to compensate those affected by the exchange’s collapse in November 2022, FTX has started a $5 billion payout to its creditors. The second round of distributions which commenced on May 30, 2025, relates to both Convenience and Non-Convenience Class creditors who meet pre-distribution conditions.
Distribution Breakdown
The present reimbursement plan states that the different classes of claims are paid in different percentages as follows.
72% dotcom customer claims are distributed across entitlement claims.
The United States Customer Entitlement Claims has 54% distribution.
This company opts for Convenience Claims: 120% distribution.
61% goes to General Unsecured Claims.
Digital Asset Loan Claims is 61% distributed.
The official distribution partners Kraken and BitGo are expected to distribute the funds to eligible recipients one to two business days after the July 5 statement.
Previous Disbursements
They are occurring in between the first round of reimbursements on February 18, 2025, during which they distributed around $1.2 billion to creditors with claims under $50,000. Industry experts at that time had speculated that a majority of these funds could go back into the cryptocurrency markets changing the market dynamics.
The Debating Experiences and the positive and negative influences.
The reimbursements plan has been criticised despite the hefty payouts. The big bone of contention is the date on which the reimbursements will be valued. Instead of paying creditors at current market prices, the creditors are being paid based on the value of their holdings when the bankruptcy was filed. Since the collapse, cryptocurrencies have seen a huge spike in value (think Bitcoin at roughly $20,000 and today over $100,000)—meaning many creditors feel like they’re being served far less of the assets than what they are currently worth.
This served as just one of the claims made by the prominent FTX creditor Sunil Kavuri, who said creditors are getting back the equivalent of 10% to 25% of the current value of their crypto holdings. He stressed that there are many creditors who feel not properly paid under this method.
Moreover, claims are being made about the city’s decision to exclude creditors from 163 countries (including Egypt, Iran, Russia, Greenland and Pakistan) from the reimbursement. That has sparked debate about whether it’s a fair and inclusive distribution strategy or not.
Market Implications
With $5 billion being infused into the accounts of former FTX users, it has become the talk of town for what it could do in the cryptocurrency markets. Analysts claim some of these funds could be returned into digital assets, the rise in their demand and the effect on prices. However, this will be affected by several factors, market sentiment and individual investment decisions among other things.
In a nutshell, the $5 billion payout is a huge step towards correcting the losses faced by FTX creditors, but indicates the intricacies and the difficulties associated in handling this debacle regarding one of the most popular crashes in the cryptocurrency world.
