FTX Recovery Trust will begin distributing about $5 billion to creditors starting May 30

FTX Recovery Trust has announced that it will begin distributing about $5 billion to creditors starting May 30, 2025, as part of the second phase of its Chapter 11 bankruptcy reorganization plan.

The Trust will send more than $5 billion within 1 to 3 business days of May 30.

This follows the first round of distribution of about $1.2 billion in February, which primarily addressed claims under $50,000.

Key Details of the Second Distribution

Start Date: May 30, 2025

• Distribution Partners: BitGo and Kraken will process payments to eligible creditors within 1 to 3 business days of the start date .
• Eligibility: Creditors with approved claims in both Convenience and Non-Convenience Classes who have completed all required pre-distribution steps, including Know Your Customer (KYC) verification and tax documentation, are eligible for this round of distributions 
  
  

  
  

  Distribution Percentages by Claim Class

• Class 5A (Dotcom Customer Entitlement Claims): 72%
• Class 5B (U.S. Customer Entitlement Claims): 54%
• Class 6A (General Unsecured Claims): 61%
• Class 6B (Digital Asset Loan Claims): 61%
• Class 7 (Convenience Claims): 120% 

It's important to note that these distributions are based on the value of assets at the time of FTX's bankruptcy filing in November 2022.

Since then, the value of major cryptocurrencies like Bitcoin has increased tremendously, which affect the perceived value of the repayments.

FTX's estate has recovered about $11.4 billion in cash for repayments, with total recovered assets estimated between $14.7 billion and $16.5 billion.

The recovery efforts include selling platform assets and pursuing legal actions against entities that owe money to FTX.

Next Steps for Creditors

Creditors who have not yet received distributions should ensure they have completed all necessary steps, including KYC verification, tax form submission, and selection of a distribution service provider (BitGo or Kraken).

Future distribution dates will be announced as the process continues.

This distribution is an effort to repay its creditors following its collapse in 2022. The process is ongoing, and additional distributions are expected.