A representative of FTX creditors, Sunil Kavuri, warned on X that scammers are targeting creditors with fraudulent emails, urging them to submit personal details under the guise of verifying their claims.
The emails direct recipients to fake claim portals and request wallet addresses, falsely warning that failing to comply by March 19 could delay payouts until July.
Fraudulent email from FTX scammers. | Credit: Sunil Kavuri.
Sunil emphasized that creditors should avoid clicking links in emails and instead access the official claims portal directly. These phishing websites are designed to steal credentials and compromise user funds.
FTX Payouts Underway, Starting With Small Claims
FTX began its creditor repayments on Feb. 18, 2025, prioritizing “Convenience Class” claimants—those owed less than $50,000.
These creditors, who make up a significant portion of the payout list, must complete KYC verification, provide tax documentation, and register with approved platforms such as BitGo or Kraken.
The initial payouts amount to roughly $1.2 billion, covering full repayment plus a 9% annual interest rate since November 2022. Larger claims are expected to be processed in the second half of the year, with FTX aiming to distribute around $17 billion in total.
FTX Collapse and Fraud Fallout
Once valued at $35 billion, FTX collapsed in 2022 after an investigation revealed that founder Sam Bankman-Fried and his associates had mismanaged customer funds, funneling them into high-risk trading through Alameda Research.
Now convicted of fraud, Bankman-Fried and four top executives are serving prison sentences. Meanwhile, creditors are finally seeing their funds returned—albeit under the looming threat of cybercriminals looking to exploit the process.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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