Kraken has confirmed that it will proceed with the next phase of FTX-related creditor repayments on May 30, extending distributions to claimants with claims exceeding $50,000.
This follows an initial round in February, which covered smaller claims of $50,000 or less.
Kraken Expands FTX Repayments to Larger Creditors in Next Phase
In a post on X, FTX creditor representative Sunil stated that Kraken has started notifying affected users via email.
The upcoming payouts will include both smaller claimants who have not yet received their full repayment and larger creditors, including institutional investors, who have been waiting for their share of recovered funds.
FTX first announced the distribution plan on February 7, stating that repayments to holders of approved claims in the Convenience Classes would begin on February 18.
Payments have been facilitated through both Kraken and BitGo, with Kraken also offering trading fee credits to ensure it does not profit from the process.
The bankrupt exchange’s estate has allocated approximately $16 billion for creditor distributions.
The first round of repayments fully covered approved Convenience Class claims, with small creditors receiving an additional 9% post-petition interest.
The second phase will now extend similar payouts to larger creditors, including accrued interest. The repayment process has faced legal and logistical hurdles since FTX’s collapse in November 2022.
The exchange, once valued at $32 billion, filed for bankruptcy following revelations that its sister company, Alameda Research, had misused customer funds.
Under the leadership of CEO John J. Ray III, FTX’s restructuring has focused on asset recovery through legal actions and liquidation efforts.
The upcoming May 30 distribution marks another step in the process, with Kraken and BitGo continuing to facilitate creditors’ payments.
FTX Creditors Plan to Reinvest Payouts, Signaling Confidence in Crypto
The collapse of FTX remains one of the largest financial fraud cases in U.S. history.
After misusing customer funds to cover losses at its sister firm, Alameda Research, the exchange faced a liquidity crisis and filed for Chapter 11 bankruptcy on November 11, 2022.
Since then, creditors have been locked in legal battles, hoping to recover their lost funds. Now, after more than two years of negotiations and asset recovery efforts, FTX’s bankruptcy estate is preparing to reimburse creditors.
This milestone relieves thousands of affected investors, though uncertainties remain for those with claims exceeding $50,000. Further updates are expected as the estate continues working to maximize recoveries.
While this marks a turning point, its impact extends beyond just compensation. According to a survey conducted by NFTevening and Storible on February 19, most creditors (79%) plan to reinvest their repayments into crypto.
The study, conducted through Prolific, surveyed 1,016 FTX creditors who met specific criteria, such as holding at least 10% of their portfolio in Solana (SOL) or owning $100 worth of SOL for over a year.
Despite recent market turbulence on Solana, including events like the controversial Libra meme coin launch and the Meteora scandal, Solana remains a top choice.
According to the survey, 62% of respondents intend to buy SOL with their payouts, while 44% want to invest in Solana-based projects.
Additionally, 71% of creditors said they would hold or buy more SOL if its price drops below $145, reflecting long-term confidence in its growth potential.
This trend suggests that many creditors view the downturn as a buying opportunity rather than an exit from the market.
With billions set to re-enter the crypto ecosystem, the upcoming reimbursements could provide a fresh wave of liquidity, potentially fueling further market growth.
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