Crypto: BitGo And Kraken Distribute $5 Billion To Former FTX Clients

The FTX saga continues to shake the crypto ecosystem. On May 30, 2025, a second wave of payments was launched, marking a new milestone in the attempt to repair the financial disaster left by the platform. Behind this large-scale logistical operation, a harsher reality emerges: not all creditors are treated equally.

FTX Repayment: A massive redistribution orchestrated by BitGo and Kraken

Following the first phase of repayments started on February 18, 2025 , targeting so-called “Convenience Class” creditors with claims under $50,000, FTX is now proceeding with a new transfer of over $5 billion to its former users. To do this, the company has enlisted two heavyweights of the crypto sector: BitGo and Kraken. Their mission? To ensure the rapid and secure distribution of payments to the various classes of creditors.

Amounts vary by category:

• International clients (class 5A) recover about 72% of their claims;
• American users (class 5B) receive nearly 54%;
• Holders of so-called “convenience” claims — under $50,000 — receive full reimbursement plus a 20% bonus.

The official FTX announcement on the $5 billion repayment.

At first glance, this progress seems to show a significant effort at redress. Yet, digging deeper, a discordance emerges.

Repayment… in yesterday’s dollars

Although the distributed amounts seem impressive, their valuation in U.S. dollars based on November 2022 casts a shadow on the picture. That date — the bankruptcy filing — serves as the reference for repayment calculations. Meanwhile, the crypto markets have experienced a spectacular rebound.

The assets held at the time of bankruptcy have, in many cases, regained value. Hence, many creditors complain of unfair treatment: their portfolios, valued downward at FTX’s collapse, do not at all account for the crypto market rebound.

The paradox is harsh. While bitcoin and other assets reached new highs in 2025, former FTX users are offered dollars “frozen in the past“. This disparity between the current market value and the one used for repayments fuels frustration in an already strained community.

Crypto Phishing: A New threat looms over FTX creditors

As BitGo and Kraken distribute $5 billion in payments to former FTX users , another battle is being fought: against scams. Several phishing campaigns have been reported specifically targeting the beneficiaries of the crypto redistribution. Fraudsters impersonate FTX, BitGo, or Kraken with the aim of stealing the eagerly awaited funds.

Phishing message sent to former FTX crypto users.

These attacks exploit urgency and surrounding confusion to trap crypto users via fraudulent emails or interfaces. Although providers have strengthened their security systems, the risk remains. This increase in cyber threats further weakens the already damaged trust of the victims of the FTX crypto exchange bankruptcy.

Two months after Sam Bankman-Fried was quietly transferred following a shocking revelation , FTX strives to settle its liabilities. However, the gap between accounting justice and crypto reality fuels resentment and suspicion. Repayments in frozen dollars are not enough to restore trust. Facing the evolution of digital assets, should the law reconsider how it evaluates and compensates losses?