FTX Recovery Trust to Distribute $5 Billion to Creditors in May 2025

The FTX Recovery Trust has announced a significant development in its Chapter 11 Plan of Reorganization, revealing that it will distribute over $5 billion to creditors in its second distribution on May 30, 2025. This distribution marks a crucial step in the process of repaying creditors, with eligible recipients set to receive funds from their chosen distribution service providers, either Bitgo or Kraken, within 1 to 3 business days from the distribution date. The distribution will adhere to the waterfall priorities outlined in the Plan, ensuring that different classes of creditors receive varying percentages of their allowed claims.

According to the announced details, Allowed Class 5A Dotcom Customer Entitlement Claims will receive a 72% distribution, while Allowed Class 5B U.S. Customer Entitlement Claims will receive 54%. Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims will each receive 61%, and Allowed Class 7 Convenience Claims will receive a 120% distribution. John J. Ray III, the Plan Administrator of the FTX Recovery Trust, underscored the importance of this milestone, noting the unprecedented scale of the creditor base and the success of the recovery efforts. The primary focus remains on maximizing recoveries for creditors and resolving outstanding claims.

Customers who have already onboarded with a Distribution Service Provider have irrevocably elected to receive their distributions directly from the provider rather than in cash from FTX. For subsequent distributions, customers and creditors must complete Know Your Customer (KYC) verification, submit the required tax forms, and onboard with either Bitgo or Kraken. Transferred claims will only be distributed to the transferee holder of an allowed claim that is processed and reflected on the official register of claims.

The FTX Recovery Trust is supported by a team of professionals, including Sullivan & Cromwell LLP as legal counsel, Alvarez & Marsal North America, LLC as financial advisor, Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel, and Landis Rath & Cobb LLP as Delaware counsel. Additional details regarding the amounts distributed by class will be filed on the docket on or prior to May 30, 2025. Customers are advised to remain vigilant against phishing attempts and to contact their Distribution Service Provider for any questions related to the availability of funds in their accounts.