FTX to Distribute $5 Billion to Creditors Starting May 30, 2025

FTX Trading Ltd. and the FTX Recovery Trust have announced that they will commence a second distribution of over $5 billion to eligible creditors starting May 30, 2025. This distribution is part of the ongoing Chapter 11 reorganization plan, which aims to compensate creditors affected by the collapse of the crypto exchange in November 2022. The funds will be disbursed to holders of allowed claims in both the Convenience and Non-Convenience Classes, provided they have completed the necessary pre-distribution processes. Eligible creditors will receive their payments through their designated distribution provider, either BitGo or Kraken, within one to three business days from the start date.

The announcement marks a significant milestone in the recovery efforts following the fraudulent activities that led to FTX's downfall. John J. Ray III, the plan administrator of the FTX Recovery Trust, highlighted the unprecedented nature of the distribution process and the success of the recovery and coordination efforts. The focus remains on maximizing recoveries for creditors and resolving outstanding claims.

The distribution will see varying payment rates for different classes of creditors. Those in allowed class 5A Dotcom Customer Entitlement Claims will receive 72% of their funds, while class 5B U.S. Customer Entitlement Claims will receive 54%. Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims will receive 61% distribution. Meanwhile, those in allowed class 7 Convenience Claims are expected to get 120%.

This second distribution follows the initial phase in February 2025, which included a record for allowed claims with Class 5 customer entitlement claims and Class 6 general unsecured claims. The record date for the next distribution was scheduled for April 11, 2025. After this phase, FTX will issue an update on subsequent record and payment dates, continuing the process of compensating creditors and resolving the aftermath of the collapse.