FTX Begins Second Round of Creditor Repayments via BitGo

FTX Begins Second Round of Creditor Repayments via BitGo

FTX’s bankruptcy estate has begun issuing repayments to customers through BitGo as part of its second round of settlement distributions, according to Sunil Kavuri, a leading creditor and advocate.

Kavuri announced on his social media that creditors with claims under $50,000 are now seeing 120% repayments, including a 20% interest bonus. The repayments are currently being reflected in the accounts of creditors who chose BitGo as their distribution agent. However, recipients won’t be able to transfer or withdraw the funds until May 30, in accordance with notices sent by BitGo and Kraken stating that distributions will be confirmed by that date.

So far, FTX has paid out around $620 million in two waves, covering a significant portion of outstanding claims. However, many creditors are still awaiting their reimbursements, and some have raised concerns about prolonged KYC delays and lack of clarity regarding disputed claims.

In particular, users who opted for the Bahamas refund process—an alternative route for FTX redemptions—have reported being stuck at the verification stage, despite having complied with the required procedures. The FTX support portal has acknowledged these issues, stating that users who chose the Bahamas pathway cannot proceed to “Stage 9,” which is the actual distribution phase.

Meanwhile, solutions are still being explored for creditors located in restricted regions such as Africa, Asia, the Middle East, and Eastern Europe. Additional payment schedules are expected to be announced in the coming weeks.

On the legal front, Caroline Ellison, former CEO of Alameda Research, is expected to be released in May 2026 due to good behavior credits. In contrast, Ryan Salame, former FTX co-CEO, and Sam Bankman-Fried, FTX's co-founder, face longer prison terms, though Bankman-Fried may be eligible for up to four years of sentence reduction.

As repayments continue, all eyes remain on whether FTX will be able to fully return funds to its creditors.