BITGO is pushing forward with FTX repayment amid rising threats

BITGO reportedly has begun the second phase of the FTX repayment process, marking another milestone in the long-awaited recovery effort for the exchange.

On May 27, FTX creditor Sunil Kavuri reported that his user account was credited through BITGO as part of his repayment rollout. However, these funds will remain locked out of the transaction until May 30th.

He said:

“The account is creditable for the distribution of FTX to BITGO. You can view it, but it is not traded until May 30th.”

Bitgo hasn’t responded yet Encryption Requests for comments at the time of reporting.

The development follows a recent update from the FTX Recovery Trust, which confirms plans to approved creditors of more than $5 billion. Payments promoted by Bitgo and Kraken are expected to arrive within 1-3 business days from May 30th.

This latest round followed the initial repayment wave in February, returning around $1.2 billion to previous FTX users.

Still, not all creditors are satisfied with the process. Many people criticize bankruptcy plans that remained at crypto prices starting from late 2022, just after the exchange collapsed, rather than at current valuations.

Since then, Bitcoin’s price has exceeded $110,000 since falling below $20,000, annoyed creditor who has been hoping for a cryptocurrency refund. Most of the repayments are made at Fiat, further exacerbating concerns about the fairness of the plan.

The risk of phishing increases

Meanwhile, phishing attempts targeting FTX creditors led to a second round of payments.

Kavuri issued a warning to X and warned creditors of fraudulent emails mimicking communications from Bitgo, Kraken and FTX. These emails direct recipients to fake websites that steal login credentials and request information.

With this in mind, Kavuri emphasized the need for attention. He advised users not to click on links received via email, even if the source appears to be reliable.

Instead, he urged the FTX creditors to manually enter the official website address in a separate browser window to access the account.