FTX has started its second distribution of over $5 billion to holders of allowed claims under its Chapter 11 Plan of Reorganization. This payment is made to claimants in both Convenience and Non-Convenience Classes who have met the required pre-distribution steps. Customers and creditors can expect to receive these funds within one to three business days from May 30.
FTX Begins Second $5 Billion Distribution
The FTX payout follows a specific priority order, as outlined in the Plan of Reorganization. Allowed Class 5A Dotcom Customer Entitlement Claims are receiving a 72% distribution of their claims. Meanwhile, Allowed Class 5B U.S. Customer Entitlement Claims are allocated 54%. These classes represent a large segment of FTX’s creditors.
For Allowed Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims, the distribution rate stands at 61%. Allowed Class 7 Convenience Claims are receiving a 120% payout, exceeding the full claim value. This varied distribution reflects the hierarchy and conditions set out in the court-approved plan.
John J. Ray III, Plan Administrator of the FTX Recovery Trust, stated,
“Today’s announcement represents continued progress returning cash to FTX’s customers and creditors. I am proud of the outstanding success of the recoveries to date. Our work continues on recovering more for creditors and resolving outstanding claims.”
FTX Payment Method and Timing
Distributions will be made through FTX’s designated service providers, Kraken and BitGo. Eligible claimants who have completed the necessary Know Your Customer (KYC) verification and tax form submission should expect payments within one to three business days from May 30, 2025. The company has emphasized that timely completion of onboarding with these service providers is essential to receive payments.
The payment method primarily uses stablecoins such as USDC and USDT. This choice aims to accelerate the distribution process by avoiding delays often encountered with traditional banking transfers. The use of stablecoins also provides immediate on-chain liquidity, allowing recipients to access funds without waiting for conventional clearing times.
FTX has issued a warning to customers to remain vigilant against phishing scams and fraudulent websites that may attempt to mimic official channels. The company advises customers to use only the official FTX Customer Portal and authorized distribution platforms.
Market Reaction and Legal Developments
This distribution follows an earlier payout in February, which returned roughly $7 billion to creditors with claims under $50,000. That first round had little noticeable effect on the broader cryptocurrency market, which continued to face macroeconomic pressures.
Currently, market conditions show increased optimism. Analysts at Coinbase noted that this wave of repayments might positively influence the crypto market due to improved investor sentiment. This is supported by a rally in major digital assets and clearer regulatory guidance emerging from U.S. lawmakers.
Institutional investors may now be more willing to reinvest funds received from the FTX Recovery Trust. The ongoing regulatory developments in the United States could help provide more confidence for such actions.
Separately, Binance is seeking to dismiss a $1.76 billion clawback lawsuit filed by the FTX estate. The lawsuit relates to a 2021 equity buyback deal between the two exchanges. Binance argues the case lacks jurisdiction and factual basis, requesting the Delaware court to dismiss it.
Requirements for Claimants
To be eligible for this distribution, claimants must complete several steps before the record date. These include logging into the FTX Customer Portal, submitting KYC information, completing tax documentation, and onboarding with either BitGo or Kraken.
FTX has promised further announcements on future record and payment dates. This distribution represents a key phase in FTX’s effort to repay creditors after its 2022 collapse. The ongoing process is part of a court-approved plan aimed at recovering and returning funds to those affected by the exchange’s failure.
Meanwhile, Netflix has announced plans for a limited series about Sam Bankman-Fried, FTX’s founder, to educate viewers about cryptocurrency. The series will also feature Caroline Ellison, former CEO of Alameda Research, with no release date announced yet.
Claim Bonus
