FTX Announces 72% Distribution to Dotcom Customers in May 2025

FTX Trading Ltd. and the FTX Recovery Trust have announced that the second distribution wave under the FTX Chapter 11 Plan of Reorganization will commence on May 30, 2025. This distribution is aimed at eligible creditors who have completed all necessary steps, including Know Your Customer (KYC) verification, tax form submission, and onboarding with one of FTX’s designated Distribution Service Providers—BitGo or Kraken.

Eligible creditors can expect to receive their funds from their chosen service provider within one to three business days following May 30. This distribution marks the first non-convenience class distribution under the plan, guided by the waterfall structure defined in the reorganization blueprint. Specifically, Dotcom Customer Entitlement Claims (Class 5A) will receive a 72% distribution, U.S. Customer Entitlement Claims (Class 5B) will receive a 54% distribution, General Unsecured Claims (Class 6A) and Digital Asset Loan Claims (Class 6B) will both receive 61%, and Convenience Claims (Class 7) will be paid out at 120%.

Plan Administrator John J. Ray III highlighted the significance of this milestone, stating, “These first non-convenience class distributions are an important milestone for FTX.” He further noted, “The scope and magnitude of the FTX creditor base make this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals.”

FTX has emphasized that customers must complete several steps to become eligible for any current or future distributions. This includes logging into the FTX Customer Portal, completing KYC procedures, submitting necessary tax documentation, and onboarding with either BitGo or Kraken. Customers who have opted for these service providers have effectively chosen to forgo direct cash distributions from FTX and instead receive payment through their selected provider. Any inquiries regarding fund availability should be directed to the provider’s customer support team.

As the process continues, FTX will announce future record and payment dates. For transferred claims, only the transferee officially listed on the claims register will receive distributions, provided the 21-day notice period has passed without objection. This structured approach ensures that the distribution process is transparent and efficient, benefiting all eligible creditors.

FTX, once a dominant force in the crypto exchange space, faced a severe liquidity crisis in November 2022, leading to its collapse and subsequent bankruptcy filing. The company's CEO, Sam Bankman-Fried, was convicted and sentenced to 25 years in prison. Legal proceedings against four other former FTX and Alameda Research executives concluded by the end of 2024, resulting in prison sentences for Caroline Ellison and Ryan Salame, while Nishad Singh and Gary Wang were given time served.

FTX’s restructuring plan, approved in October 2024, prioritized repayments to users with claims under $50,000. Around 98% of affected users will receive 119% of their declared funds. This plan underscores FTX’s commitment to compensating its creditors and restoring trust in the crypto community.