- FTX initiates $5 billion second distribution to eligible creditors through BitGo and Kraken, fulfilling recovery goals under its Chapter 11 plan.
- Convenience Class creditors receive 120%, while other classes receive between 54% and 72%, depending on the claim category approved.
- Eligible customers completed KYC, tax forms, and onboarding before the May 30 distribution start date for successful fund disbursement.
FTX has started distributing over $5 billion to eligible creditors as part of its Chapter 11 Plan of Reorganization. Customers who completed pre-distribution requirements are expected to receive funds within one to three business days from May 30, 2025.
Structured Payouts Across Claim Classes
FTX Trading Ltd. and the FTX Recovery Trust confirmed the commencement of the second round of recoveries for creditors in Convenience and Non-Convenience Classes. This round follows the plan’s priority waterfall for distributing allowed claims.
Holders of Class 5A Dotcom Customer Entitlement Claims are receiving a 72% distribution, while Class 5B U.S. Customer Entitlement Claims are being paid 54%. For Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims, the distribution stands at 61%. Class 7 Convenience Claims receive 120%, reflecting earlier commitments made to small-scale creditors.
Payouts are being processed through BitGo or Kraken, the selected Distribution Service Providers. Funds for this round are being drawn from FTX’s $11.4 billion cash reserves.
Distribution Process and Requirements
Customers and creditors must complete several steps to be eligible for upcoming distributions. These include logging into the FTX Customer Portal at claims.ftx.com, submitting tax forms, completing KYC verification, and onboarding with either BitGo or Kraken.
The process applies to both individual and institutional claimants. FTX has emphasized that instructions for onboarding are available exclusively through the official portal. The platform also advised users to be vigilant against phishing attacks and confirmed it will never request wallet connections.
FTX Digital Markets Ltd. will communicate separately with customers who opted for claim administration through its platform. Further distribution dates will be announced in due course.
Progress Under Plan Administration
John J. Ray III, serving as Plan Administrator, acknowledged the distribution as continued progress in returning funds to customers and creditors. He confirmed that recovery work remains ongoing and aims to increase returns further.
The second distribution follows a court-approved reorganization plan from October, which projects $14.7 billion to $16.5 billion in total repayments. This includes estimated returns of up to 119% for 98% of the exchange’s former customers, aided by asset sales and equity in AI firm Anthropic.
