Bankrupt crypto exchange FTX has launched its second round of repayments, distributing over $5 billion to approved creditors. This marks a significant step forward in the platform’s efforts to make amends following its collapse.
$5B in Repayments Rolled Out
The new payout follows FTX’s initial $1.9 billion disbursement, bringing the total repayment to over $6.9 billion. According to a May 30 update, these latest payouts are being made to creditors in the Convenience and Non-Convenience Classes who have met all pre-distribution requirements.
John Ray III, FTX’s CEO, praised the progress, saying:
“This represents continued progress returning cash to FTX’s customers and creditors. I’m proud of the outstanding success of the recoveries to date.”
Payouts are being handled by BitGo and Kraken, with processing expected to complete within one to three business days.
Who’s Getting What?
Creditors are receiving different amounts depending on their claim type:
- Dotcom Entitlement Claims: 72% of eligible funds
- US Customer Entitlement Claims: 54% of eligible funds
- Convenience Claims (usually smaller amounts): 120% of initial claims
- General Unsecured & Digital Asset Loan Claims: ~61% repaid
Crypto advocate Sunil Kavuri confirmed that Kraken started processing FTX US claims on May 30. International distributions are scheduled for June 2. The total value of US claims is about $312 million, with $168 million going to claims over $50,000.
Security Warning: Beware of Phishing Scams
FTX also issued a security alert, warning creditors of rising phishing attempts linked to the payout process. The company urged users to verify the authenticity of all communications before acting.
Could This Spark a Crypto Rally?
Industry analysts are watching closely. Since much of the payout is in stablecoins, many expect recipients to quickly reinvest into digital assets.
Miles Deutscher, a popular market analyst, believes the added liquidity could act as a short-term catalyst for altcoins. Improved sentiment, especially amid clearer regulations, may also prompt institutional players to re-enter the market.
Coinbase researchers support this outlook, suggesting that the influx of funds could rejuvenate crypto trading activity, especially in the altcoin space.
