Distribution Timeline and Total Amount
The FTX Recovery Trust has announced that it will begin distributing over $5 billion to approved creditors on May 30, 2025, as part of the Chapter 11 Plan of Reorganization. This first non-convenience class distribution applies to holders of allowed claims in the Convenience and Non-Convenience Classes who have completed all pre-distribution requirements. Eligible creditors should expect to receive funds from their selected distribution service provider (Bitgo or Kraken) within 1 to 3 business days from May 30. Additional distribution dates will be announced in the future.
Recovery Rates by Claim Class
In the second distribution, following the waterfall priorities set forth in the plan, the following distributions will be made:
- Allowed Class 5A Dotcom Customer Entitlement Claims: 72% distribution
- Allowed Class 5B U.S. Customer Entitlement Claims: 54% distribution
- Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims: each receive 61% distribution
- Allowed Class 7 Convenience Claims: 120% distribution
John J. Ray III, Plan Administrator of the FTX Recovery Trust, stated: 'These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base makes this an unprecedented distribution process, and today's announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals. Our focus remains on recovering more for creditors and resolving outstanding claims.'
Important Reminders
Customers who onboard with a distribution service provider irrevocably forfeit their right to receive cash distributions directly from FTX. Payments will instead go through their chosen provider. If customers have any questions about the availability of funds in their account with the selected provider, they should contact the provider's customer support directly. FTX also warns users to remain vigilant against phishing attempts, emphasizing that FTX will never request wallet connections. For transferred claims, distributions will only be made to transferee holders of allowed claims that are properly processed and registered with the Notice and Claims Agent.