Nearly three years after filing for Chapter 11 bankruptcy in November 2022, FTX has finally set a concrete date for its first creditor payouts. According to an announcement on February 7, 2025, the exchange will begin distributing funds to Convenience Class creditors starting February 18, 2025, with funds expected to arrive within one to three business days.
Eligibility and Distribution Partners
The initial payout is limited to claimants who have fulfilled all pre-requisite requirements, including identity verification (KYC) and tax documentation submission. FTX has transferred the necessary funds to its distribution partners, Bitgo and Kraken, which will handle payouts to retail clients, institutional investors, and creditors in their supported jurisdictions.
The distribution plan is part of FTX's restructuring plan approved under Chapter 11, and is being coordinated by the FTX Recovery Trust. John J. Ray III, administrator of the FTX Recovery Trust, described the upcoming payout as a "milestone" after 28 months of intensive asset recovery efforts. The trust continues to pursue outstanding funds while overseeing phased repayments.
Next Steps for Creditors
Eligible creditors must also complete onboarding with Bitgo or Kraken via FTX's customer portal to qualify for future distributions. Transferred claims require a 21-day notice period and official registration updates. Once distributions begin, recipients should contact Bitgo or Kraken directly for account-specific inquiries. Unclaimed funds remain the responsibility of account holders after transfer.
The FTX estate emphasized that details on eligibility and processes are available on the FTX support portal. The case remains under the jurisdiction of the U.S. Bankruptcy Court for the District of Delaware. Separate timelines for other creditor classes have not yet been announced, and further distributions are expected to be carried out in subsequent phases.