FTX’s Initial $1.2B Payout Process to Creditors Is Underway

Creditors of the collapsed cryptocurrency exchange FTX with claims below $50,000 have started receiving their payouts, which include 9% annual interest accrued since November 2022.

Multiple users on the FTX subreddit have reported receiving funds on accounts at crypto exchange Kraken with the added interest on top. Creditors are scheduled to receive roughly 119% of their adjudicated claim value, according to the bankruptcy plan.

Arkham Intelligence also pointing to FTX’s wallet outflows as evidence of the payments, which it says are expected to total around $1.2 billion.

Creditors with claims exceeding the $50,000 threshold are set to begin receiving their payments in the second quarter, with around $16 billion set to be distributed in total.

The funds are being distributed in U.S. dollars through both BitGo and Kraken. According to screenshots shared on Reddit, Kraken also distributed trading-fee credits to users. The move is seen as a way for Kraken to distribute the payouts without profiting from them.