Kraken and Bitgo confirm FTX repayment plan May 30th

Kraken and Bitgo, the distribution agents selected by the bankrupt Exchange FTX, have confirmed that a second repayment of creditors will soon begin. The two crypto companies emailed customers to expect payment by May 30th.

FTX creditor Sunil Kavuri shared an update to X with a screenshot of an email sent by the company. Two very similar emails say FTX has completed the distribution of funds and praise the customer’s accounts.

However, Kraken said the funds will appear in client accounts by May 30, and Bitgo was designated on May 30.

The company said in its email:

“I am writing to confirm that FTX has completed your distribution as a distribution service provider of choice. Please note that such funds are expected to be credited to your Bitgo account on May 30, 2025.”

The email to customers says it will review previous notifications from the FTX Recovery Trust and send more than $5 billion to creditors for the second phase of its distribution. The groups that benefit from this payment are five convenience classes.

These creditors earn 54% to 120% of their assets, over $50,000, with international creditors earning 72%, and US claims earning 54% if they exceed $50,000. Claims under $50,000 earn 120%. With the second distribution expected to be completed by May 30th, the company plans to announce its distribution of its next creditors in time.

Users are still waiting for funds as a trail FTX bankruptcy process of criticism

The latest distribution means that FTX Bankruptcy Property has paid more than $12 billion to its creditors, and FTX EU users have also begun repayments from backpack exchanges. However, there are still many users waiting to pay off.

Most of the unpaid users are in restricted countries such as China, Russia and almost all African countries. So far, there has been no official communication from the FTX Estate regarding when this creditor group will receive payments.

However, there have been reports that replacements may add distribution agents soon to support users in this restricted area. X’s FTX creditor Zhetengji confirmed this, adding that it is uncertain whether the new distribution provider will cover FTX customers in mainland China.

Still, many users, including those who have received the payment, criticize the bankruptcy process. The bankruptcy process is paying for assets in 2022, when some people have more than quadrupled in their value.

Most people blame real estate managers, but some believe that the US government is also conspiring. FTX creditor Arush believes the US government has allowed insiders to benefit from FTX bankruptcy by selling assets at a massive discount.

He said the government sold Hood’s shares, which Sam Bankman Freed had purchased for $648 million, to Robin Hood for $615 million, even before Bankman Freed’s conviction. The same stock is currently worth $3.4 billion.

The legal battle over FTX bankruptcy remains

Meanwhile, multiple legal dramas related to FTX bankruptcy continue in the background. Most of these cases revolve around FTX Estate’s clawback efforts. This is one of the biggest, a $1.7 billion lawsuit against Binance.

However, Binance recently asked the court to dismiss the case. It said it was unfounded and that FTX’s failure was due to corporate fraud. The exchange manager had allegedly accused of paying FTX’s Binance in 2021 in the original lawsuit, as it occurred when part of the stock repurchase agreement was already bankrupt.

He also claimed that Binance Ex-CEO Changpeng Zhao posted on Twitter (now X) and maliciously caused the bank’s run on FTX. Binance disagreed, noting that the tweet was after Coindesk’s report on FTX and that bankruptcy estate did not disprove Tweet as False.