FTX Distributes $5 Billion to Creditors in Second Round of Payments

The FTX Recovery Trust has initiated a second round of payments to its creditors, distributing $5 billion to eligible claimants. This move follows the company's Chapter 11 bankruptcy filing and marks the second round of distributions under its confirmed plan. The payments are being processed through service partners BitGo and Kraken, with eligible users expected to receive their funds within three business days.
The distributions cover multiple claim classes, with varying percentages based on the plan's waterfall structure. Dotcom customers under Class 5A are receiving 72% of their allowed claim values, while U.S. customers under Class 5B are receiving 54%. Unsecured and loan claims receive 61%, and convenience class holders under Class 7 are receiving 120% with full principal and additional interest. These payouts reflect gains from recovered assets, equity sales, and strategic liquidations, including stakes in companies like Robinhood and Anthropic.
The recovered value has allowed the estate to meet high repayment thresholds, with the plan returning up to 74% of the dollar value of user balances recorded in November 2022. Smaller claimants are expected to receive over 119% of their claim value across distributions. However, some users have expressed concerns about receiving fiat repayments instead of the appreciated crypto assets they originally held.
FTX has reminded customers to complete identity verification and tax documentation on the FTX claims portal and to complete onboarding with either BitGo or Kraken to receive future payments. The exchange has also warned users to avoid phishing sites and unauthorized emails, emphasizing that all instructions and updates will be shared through secure channels. Compliance with official guidelines ensures eligibility for the next round of payments.
Eligible creditors will only receive funds if they meet all procedural requirements by each record date. FTX will publish future payout schedules after verifying additional claims, supporting its goal of fully resolving its creditor obligations. This distribution is a significant step in the recovery process, demonstrating FTX's commitment to repaying its creditors and moving forward from its bankruptcy.
Crypto investors and speculators closely monitor FTX creditor distributions as the reimbursements could impact the digital asset markets. The first round of FTX creditor payments for recipients with less than $50,000 in claims was distributed on Feb. 18 and totaled $1.2 billion. At the time, a significant portion of the $1.2 billion could be reinvested back into the crypto markets.
The FTX reimbursements have sparked controversy among creditors and customers of the now-defunct exchange. In September 2024, FTX creditor Sunil Kavuri shared court documents ruling that FTX creditors would be reimbursed as of the date their petition was filed instead of at current market prices. Creditors of the former exchange received only 10%–25% of their crypto holdings’ value due to the court ruling. Kavuri sounded the alarm again in February this year, when he called attention to creditors in 163 countries who are ineligible to receive reimbursements, including residents in Egypt, Iran, Russia, Greenland, Pakistan and others.

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