On May 27 (local time), CryptoPolitan reported that FTX’s bankruptcy estate has begun distributing repayments to creditors through BitGo as part of a second round of settlements. Sunil Kavuri, a representative for FTX creditors, announced via his X (formerly Twitter) account that repayments have started, noting that creditors with claims under $50,000 are receiving 120% of their claim amounts, including 20% interest.
Kavuri confirmed that creditors who selected BitGo as their distribution agent are seeing their balances reflected in BitGo accounts. However, these funds remain locked until May 30, meaning no withdrawals or transfers can be made until then. “FTX distributions have been deposited into BitGo accounts, including those related to the Bahamas process. The amounts are viewable, but no transactions are allowed until May 30,” he stated.
This distribution aligns with previous notifications sent by both BitGo and Kraken, the two designated distribution agents, which indicated that repayment details would become accessible by the end of May.
Long Road Ahead for FTX Repayments
To date, FTX has distributed around $620 million (approximately KRW 853.1 billion) across two rounds of repayments, covering the majority of its debt. However, many creditors remain unpaid, and concerns continue to mount. Kavuri’s post prompted a flood of complaints about delays, particularly around prolonged KYC (Know Your Customer) processes and insufficient information about disputed claims. Users involved in the separate Bahamas-based refund process also report stalled progress despite completing required steps.
According to the FTX support site, those who opted for the Bahamas process are unable to access “Phase 9” of the distribution, as stated: “If your claim was traded or if you selected the Bahamas process, you cannot access Phase 9.”
Additionally, some creditors located in restricted regions such as Africa, Asia, the Middle East, and Eastern Europe remain excluded from payouts. The bankruptcy estate is currently exploring payment options for these groups, with further announcements expected. Total repayments are projected to reach up to $1.6 billion.
Former FTX Executives May Be Released Before Payouts Conclude
Amid ongoing frustrations over repayment delays, some creditors are voicing anger over the perceived inefficiency of the bankruptcy managers. While administrators cite the complexity and scale of FTX’s collapse, many believe the legal team is partly to blame.
One source of contention is the estate’s ongoing recovery lawsuits, including a $2 billion share repurchase dispute with Binance, and token-related cases against NFT Star and Delysium, which are reportedly slowing the distribution process.
Ironically, some former FTX executives may finish their sentences before all creditor repayments are completed. Caroline Ellison, former CEO of Alameda Research, is expected to be released by May 2026 due to good behavior. In contrast, former FTX co-CEO Ryan Salame and founder Sam Bankman-Fried are serving longer terms. However, Bankman-Fried could see up to four years reduced from his 25-year sentence for good conduct.