Following the commencement of the first distribution of claims to FTX creditors, top representative Sunil Kavuri has highlighted the next payment date.
In an X post yesterday, Kavuri disclosed that FTX has commenced repayments to creditors with claims worth less than $50,000. According to the activist, the defunct crypto exchange initiated the first payment yesterday, February 18, 2025, at 10:00 a.m. (ET).
Notably, FTX will distribute a total of $1.2 billion to creditors with less than $50,000 in individual claims. Of this amount, the exchange repaid $800 million to creditors yesterday.
Kavuri revealed that this payment covers 162,000 accounts, representing 35.21% of the 460,000 eligible claims. Per Kavuri, the payments were evenly split between the original FTX account holders and claim buyers. These categories of creditors received $400 million (50% of the $800 million earmarked for the first payment) each.
Next Payment Schedule
In a follow-up tweet, Kavuri disclosed the next payment schedule for FTX reimbursement. He highlighted April 11, 2025, as the official record date for claims exceeding $50,000. Notably, creditors with claims above $50,000 must be recognized to confirm their eligibility for repayment.
Afterward, distribution will commence on May 30, 2025, for creditors within this category. The defunct exchange will also reimburse smaller claims below $50,000 on this date. These are users who did not receive payouts yesterday despite being approved for repayment.
FTX Debacle
The ongoing distribution comes nearly three years after FTX suffered a devastating collapse in late 2022, plunging it into bankruptcy. After several legal proceedings, a bankruptcy judge approved the FTX reorganization plan in October 2024, paving the way for repayment.
The $1.2 billion earmarked for smaller claims represents 9.23% of the $13 billion FTX is expected to distribute to creditors. Leading crypto exchanges BitGo and Kraken are handling the payouts.
In the meantime, FTX founder Sam Bankman-Fried is serving a 25-year jail term for fraud amid the exchange’s collapse. Despite confirming his wrongdoings, he believes the 25-year jail term is extreme. Hence, he appealed the ruling with the hope of reducing the sentencing.
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