FTX creditor says second phase of distribution will begin on May 30

Failed crypto exchange FTX will start the next phase of its claims distribution by May 30, 2025. Popular creditor Sunil Kavuri disclosed this in a tweet, noting that the Kraken exchange is now sending emails to customers to confirm this.

According to Kavuri, this distribution will include more than and less than $50,000, unlike the first distribution, which was only for claims not exceeding $50,000. This is because the next distribution applies not only to holders of the Convenience Claims but also to FTX Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims.

A press release from the defunct exchange said:

“The anticipated record date for the next distribution (the “Next Distribution”) will be April 11, 2025 for holders of allowed claims of FTX’s Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims as defined in the Plan.”

Meanwhile, a copy of the email received by those who picked Kraken as their preferred platform to receive their refund added that all updates about the process will be available on the FTX Claims portal.

However, creditors who are meant to receive their refunds through FTX Bahamas are complaining that they have yet to receive any information on when they will receive them.

Bankruptcy process continues to attract criticisms

Despite the progress made in repayment efforts, the bankruptcy process continues to attract criticisms from many creditors who believe that the administrators did not make the best decision in their stewardship. The fact that Bybit survived its $1.4 billion hack has led many to also conclude that FTX would have survived its bank run too.

Following the recent $3.5 billion fundraising by AI startup Anthropic, which increased its valuation to $61.5 billion, some users have noted that the exchange’s stake in Anthropic, which it sold for $884 million in 2024, is now worth $5 billion.

They point to several instances where the FTX debtors liquidated or sold off assets worth much more today. These include the sale of Robinhood (HOOD) shares, now worth over $3 billion, and the auction of SOL tokens at a massive discount to crypto hedge funds.

FTX CEO to receive $41 million as compensation

FTX CEO John Ray III is set to get $41 million as compensation for navigating bankruptcy, with $38.1 million as an incentive fee and $3 million as a completion fee. Many creditors believe the fee is outrageous, given the outcome of the process.

One user said:

“Money paid by creditors, while tens of Billions of value were lost in the most absurd ways due to the ineptitude of current management.”

Some creditors are now calling for the court to disapprove the fee, which has already been approved by an ad-hoc Independent Board and ratified by the Wind Down Board. Creditors who want to oppose the fee must submit an objection before March 24.

Meanwhile, convicted FTX co-founder Sam Bankman-Fried is now citing that the exchange could have survived if it had not filed for bankruptcy in his appeal against his conviction. As Kavuri observed, the value of FTX assets, if they were not sold off after the bankruptcy, would be around $77 billion as of the start of March.

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