Kraken has started distributing claims for creditors of the collapsed cryptocurrency exchange, FTX. This announcement comes from Sunil, an FTX creditor activist. Creditors who opted for Kraken to manage their claims are receiving emails confirming the completion of the onboarding process. This marks an important step in repaying creditors after FTX’s bankruptcy in 2022.
BitGo, another company assigned to handle claims, will begin its distribution process soon, although no specific date has been announced. The distribution process varies based on the claim size.
Creditors with claims over $50,000 do not have a set timeline for receiving their funds. In contrast, those with claims below $50,000 can expect their payments within 60 days, starting January 3, 2025, with funds likely arriving by March 3, 2025.
Kraken is also providing incentives for FTX victims. New users who choose Kraken for their payouts will receive trading fee credits. This includes fee-free trading up to $50,000 on Kraken Pro and additional trading fee credits based on the payout amount, which will be available after the distribution process concludes.
FTX’s bankruptcy, which began in November 2022, has drawn significant attention due to the exchange’s impact on the crypto market and the financial losses faced by its users.
The founder, Sam Bankman-Fried, was sentenced to 25 years in prison for fraud and misusing customer funds. FTX, once valued at $32 billion, selected Kraken and BitGo to oversee the recovery and distribution of creditor funds. While the start of claim distribution is positive, delays for larger claims may frustrate some creditors.
