Bankrupt cryptocurrency exchange FTX announced on February 7, 2025, that it will begin its first distributions to Convenience Class creditors on February 18, 2025, nearly three years after its November 2022 bankruptcy filing. The payouts will be processed through partnering custody platforms Bitgo and Kraken, with funds expected to arrive within 1-3 business days.
Payout Plan and Partners
According to the announcement, only Convenience Class claimants who have completed pre-payout requirements—including Know Your Customer (KYC) identity verification and tax documentation—are eligible for the initial distribution. FTX has transferred the necessary funds to Bitgo and Kraken, which will handle payouts for retail, institutional clients, and creditors in supported jurisdictions. Timelines for other creditor classes will be announced separately.
This distribution is part of FTX's Chapter 11 restructuring plan, overseen by the FTX Recovery Trust. Trust administrator John J. Ray III called the milestone a significant achievement after 28 months of asset recovery efforts. The trust continues to pursue outstanding funds while managing phased repayments.
Operational Requirements for Creditors
Eligible creditors must complete KYC checks, submit tax forms, and onboard 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. Unclaimed funds remain the responsibility of account holders post-transfer.
Recipients are advised to contact Bitgo or Kraken directly for account-specific inquiries once distributions begin. The FTX estate recommends visiting the support portal for detailed eligibility and process information. The case continues under the U.S. Bankruptcy Court for the District of Delaware.
FTX's collapse remains one of the most consequential events in cryptocurrency history, with founder Sam Bankman-Fried convicted of fraud. This initial payout represents a crucial step toward creditor recovery, though full restitution remains challenging.