76 The payout process for creditors of the collapsed cryptocurrency exchange FTX has officially commenced, with initial distributions totaling approximately $1.2 billion. The payments are being processed in U.S. dollars through BitGo and Kraken, marking a significant milestone in the ongoing bankruptcy proceedings. Small Creditors Receive Payments With Accrued Interest Creditors with claims below $50,000 have begun receiving their payments, which include 9% annual interest accrued since November 2022. Multiple users on the FTX subreddit have reported funds appearing in their Kraken accounts, reflecting a payout exceeding their initial adjudicated claim value. FTX USERS RECEIVING FUNDSUsers with FTX claims of under $50,000 have started to receive funds today through distribution providers Kraken and Bitgo.This wave of creditors represents approximately $1.2B in value. pic.twitter.com/SFGdsNOrBS— Arkham (@arkham) February 18, 2025 According to the FTX bankruptcy plan, these creditors are set to receive approximately 119% of their approved claims, a rare outcome in bankruptcy settlements. Blockchain analytics firm Arkham Intelligence has also tracked wallet outflows from FTX, confirming the distribution process is underway. Larger Claims Set for Second-Quarter Payouts While smaller creditors are receiving their funds now, those with claims exceeding $50,000 are scheduled to begin receiving their distributions in the second quarter of 2025. In total, FTX plans to distribute around $16 billion to creditors as part of its bankruptcy resolution. Payments Processed via Kraken and BitGo The funds are being distributed through BitGo and Kraken, with Kraken taking additional steps to support affected users. Screenshots shared on Reddit indicate that Kraken issued trading fee credits alongside the payments, a move seen as a way to distribute funds without profiting from the process. The initiation of payouts signals progress in FTX’s complex bankruptcy proceedings, offering partial restitution to affected users. However, with larger creditor payments still pending, the full resolution of the exchange’s collapse remains an ongoing process. BitGoCryptocurrencyFTXKraken 0 FacebookTwitterPinterestEmail Author Profile Posts by the Author Bitcoin Drops to $86,000 Triggering $1.6 Billion in Liquidations Solana Stakers Reduce Deposits as SOL Price Declines OKX Reaches $500 Million Settlement with U.S. DoJ Over Compliance Violations Franklin Templeton Joins the Solana ETF Race, Potentially Integrating Staking Rewards Pi Network Token Plummets 65% After Mainnet Launch Amid Legitimacy Concerns SEC Accepts CoinShares XRP ETF Application for Review Jacob Ezra Freelance News writer, and Editor. previous post Ethereum Layer-2 Abstract Investigates Wallet Drain, Possible Link to Cardex next post Wintermute Eyes U.S. Expansion Amid Strategic Growth Plans You may also like Bitcoin Drops to $86,000 Triggering $1.6 Billion in... February 25, 2025 Solana Stakers Reduce Deposits as SOL Price Declines February 25, 2025 OKX Reaches $500 Million Settlement with U.S. DoJ... February 25, 2025 Franklin Templeton Joins the Solana ETF Race, Potentially... February 24, 2025 Pi Network Token Plummets 65% After Mainnet Launch... February 21, 2025 SEC Accepts CoinShares XRP ETF Application for Review February 19, 2025 U.S. Crypto Investors Continue to Embrace Memecoins Despite... February 19, 2025 Wintermute Eyes U.S. Expansion Amid Strategic Growth Plans February 19, 2025 Ethereum Layer-2 Abstract Investigates Wallet Drain, Possible Link... February 18, 2025 SEC’s Crypto Task Force Reportedly Building National Bitcoin... February 18, 2025