FTX Trading Ltd. and the FTX Recovery Trust have officially announced that they will distribute over $5 billion to eligible creditors as part of the second round of repayments under their Chapter 11 Plan of Reorganization.
Scheduled for May 30, 2025, this distribution marks a major step forward in the ongoing efforts to return funds to those affected by the collapse of the once-dominant crypto exchange.
Creditors who have completed the necessary pre-distribution steps will receive their payouts through one of the two approved distribution service providers, BitGo or Kraken, within one to three business days following the distribution date.
The latest payout reaffirms FTX’s commitment to efficient and transparent handling of its bankruptcy process, which has been under close scrutiny since the company’s dramatic implosion in 2022.
Detailed Breakdown of Creditor Classes and Distribution Rates
The second distribution will follow the structured payout hierarchy established in FTX’s reorganization plan.
Among the notable disbursements, Class 5A Dotcom Customer Entitlement Claims will receive 72% of their allowed claims, while Class 5B U.S. Customer Entitlement Claims are set to receive 54%.
Meanwhile, both Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims will receive 61% payouts.
Interestingly, Class 7 Convenience Claims, typically smaller claims, will receive a 120% distribution, which likely reflects early resolution incentives or simplified claims processing.
These figures represent substantial recoveries compared to typical bankruptcy proceedings and are being hailed as a rare success in the realm of large-scale crypto failures.
Also Read: FTX Creditors Targeted By Phishing Email Scam Amid Ongoing Payout Concerns
FTX Recovery Team Celebrates Milestone in Historic Process
John J. Ray III, the Plan Administrator of the FTX Recovery Trust, emphasized the significance of this distribution round, calling it a pivotal milestone in an “unprecedented distribution process.”
Ray acknowledged the complex global creditor base and praised the coordination efforts of legal and financial experts involved in the recovery.
With this payout, FTX begins disbursing funds to non-convenience classes for the first time, broadening the scope of restitution.
While more distributions are expected in the future, this round is considered a testament to the Recovery Trust’s effective asset management and negotiation capabilities, aimed at maximizing returns to stakeholders.
Also Read: FTX Disqualifies 392,000 Customer Claims Worth $2.5B Over KYC Noncompliance
Key Steps for Customers and Continued Vigilance Against Phishing
To receive upcoming distributions, customers must ensure compliance with several administrative steps.
These include logging into the FTX Customer Portal, completing Know Your Customer (KYC) verification, submitting tax documentation, and onboarding with either BitGo or Kraken.
It is crucial to note that customers who opt for distribution through these service providers effectively waive their right to direct cash payouts from FTX.
Additionally, FTX has issued a phishing advisory warning users to stay alert against fraudulent emails and fake portals mimicking the official FTX platform.
The recovery team continues to stress the importance of following only official channels for information and onboarding, especially as large sums are being transferred in the coming weeks.