FTX Initiates Refunds Through BitGo Amid Ongoing Payment Delay Complaints

# FTX Customers Start Refunds via BitGo Amid Bankruptcy On October 27, CryptoPolitan reported that FTX’s bankruptcy administrators have initiated customer refunds through BitGo following the platform's second liquidation arrangement. Sunil Kavuri, an FTX creditors' representative, announced on his X (formerly Twitter) account that creditors with claims under $50,000 are receiving refunds at 120% of their principal, which includes a 20% interest adjustment. Kavuri revealed that the disbursements have started reflecting in the accounts of creditors who chose BitGo as their disbursement agent. However, these funds cannot be withdrawn or transferred until May 30. "FTX distributions have been deposited into BitGo accounts, including procedures from the FTX Bahamas process. While balances can be verified, transactions remain restricted until May 30," he noted. This refund aligns with previous announcements from the two disbursement agents, BitGo and Kraken, informing customers that funds would be available for verification but not withdrawal until May 30. Thus, these developments were anticipated. # Ongoing Challenges in FTX Refund Efforts To date, FTX has disbursed approximately $620 million (₩853 billion) to creditors across two rounds of payments, addressing a substantial portion of outstanding liabilities. However, numerous creditors are still awaiting payments, with ongoing delays causing frustration. Kavuri’s posts highlight several unresolved issues, including extended delays in Know Your Customer (KYC) verifications and a lack of information regarding disputed claims. Additionally, some users who followed the refund procedures within the FTX Bahamas process have reported being stuck in verification stages, despite complying with protocol. FTX’s support page acknowledges these issues, noting that users who selected the Bahamas procedure are unable to progress to "Stage 9," the distribution phase. The site specifies that "if your claims have been sold or if you opted for the Bahamas procedure, you won’t have access to 'Stage 9.'" Besides procedural challenges, creditors from restricted regions such as parts of Africa, Asia, the Middle East, and Eastern Europe remain in limbo. According to reports, FTX administrators are working on solutions for these groups, withadditional timelines and updates anticipated soon. The total refund amount is estimated to reach up to $1.6 billion. # Former FTX Executives Might Be Released Before Bankruptcy Resolution Delayed refunds continue to generate discontent among FTX creditors. While bankruptcy administrators cite the scale and complexity of FTX’s collapse as the primary reason for setbacks, some creditors blame mismanagement by bankruptcy consultants for the delays. A significant source of discontent involves ongoing recovery lawsuits. FTX administrators are engaged in several high-profile cases, including a $2 billion share repurchase dispute with Binance and token-related lawsuits against NFT Star and Delysium. These legal battles further delay recovery efforts. Interestingly, despite ongoing creditor refunds, former FTX executives’ legal proceedings have primarily concluded. Caroline Ellison, the former CEO of Alameda Research, is slated for an early release in May 2026 due to good behavior, suggesting she could leave prison before FTX’s bankruptcy proceedings are fully resolved. Meanwhile, former FTX co-CEO Ryan Salame and co-founder Sam Bankman-Fried face longer sentences, although Bankman-Fried could see up to four years of his 25-year term reduced for good conduct. As FTX’s bankruptcy case unfolds, creditors and stakeholders remain focused on resolving outstanding disbursements, legal challenges, and claims processes. Despite progress, the road to recovery remains arduous.