Former clients of the bankrupt platform FTX with assets up to $50,000 have begun receiving initial payouts on the Kraken exchange and via the BitGo service.
FTX USERS RECEIVING FUNDS
Users with FTX claims of under $50,000 have started to receive funds today through distribution providers Kraken and Bitgo.
This wave of creditors represents approximately $1.2B in value. pic.twitter.com/SFGdsNOrBS
— Arkham (@arkham) February 18, 2025
They are entitled to compensation at the rates of November 2022.
According to Sunil Kavuri, a representative of the largest group of FTX creditors, funds totaling $800 million have already been received by 162,000 out of 460,000 wallets.
In a conversation with Cointelegraph, Bitget Wallet’s Chief Operating Officer Alvin Kan suggested that many market participants will reinvest the received funds, “affecting market liquidity and prices.”
However, the news of the first round of creditor payouts negatively impacted the prices of leading cryptocurrencies.
In October, Delaware bankruptcy court judge John Dorsey approved the plan for creditor payouts from the collapsed exchange.
The proposed compensation scheme was supported by 94.48% of FTX clients with claims on assets worth $6.83 billion. About 98% of creditors will receive at least 118% of their claims in fiat at the rate at the time of the bankruptcy filing.
Previously, FTX settled claims with the CFTC amounting to $12.7 billion and reached a settlement with the U.S. Internal Revenue Service on a lawsuit for $24 billion.