FTX will begin its second major creditor distribution on May 30, 2025
FTX Recovery Trust said it will start distributing more than $5 billion to approved creditors on May 30, 2025. The distribution will be made under the company’s Chapter 11 Plan of Reorganization. According to the announcement, the payout applies to holders of allowed claims in the Plan’s Convenience and Non-Convenience classes, as long as they have completed every required pre-distribution step before the payment date.
FTX said eligible creditors should expect to receive their funds through the distribution provider they selected during the onboarding process. The two named Distribution Service Providers are Bitgo and Kraken. The company added that funds are expected to arrive within 1 to 3 business days starting from May 30, 2025. It also noted that additional distribution dates will be announced in the future, meaning this payment round is part of a broader recovery process rather than the final step.
Recovery rates differ by claim class under the Plan’s waterfall priorities
This payment round is described as the Second Distribution. FTX said the allocation follows the waterfall priorities established in the restructuring plan, so each type of claim receives a different percentage based on its classification and legal priority. The announcement listed the exact recovery rates for each eligible class rather than giving a general estimate.
- Allowed Class 5A Dotcom Customer Entitlement Claims will receive a 72% distribution.
- Allowed Class 5B U.S. Customer Entitlement Claims will receive a 54% distribution.
- Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims will each receive a 61% distribution.
- Allowed Class 7 Convenience Claims will receive a 120% distribution.
These figures show a clear difference across creditor categories. The highest percentage belongs to Class 7 Convenience Claims at 120%, while Dotcom customer claims, U.S. customer claims, general unsecured claims, and digital asset loan claims are set at 72%, 54%, and 61% respectively. FTX presented these percentages as the defined payout levels for this distribution round and did not attach any additional adjustment mechanism in the announcement.
John J. Ray III called the distribution a major milestone for FTX
John J. Ray III, the Plan Administrator of the FTX Recovery Trust, said the first distributions to non-convenience classes mark an important milestone in the FTX case. He stressed that the size and breadth of the FTX creditor base make this an unprecedented distribution process. In his view, the announcement reflects the strong progress made by the professional teams handling recovery efforts and coordinating claims administration.
He also said the trust remains focused on two ongoing goals: recovering more value for creditors and resolving outstanding claims that have not yet been fully settled. That comment suggests the more than $5 billion payout is significant, but it does not mean the overall claims process is over. Instead, it marks a key step in a longer restructuring and recovery effort still moving forward.
What changes once a creditor chooses Bitgo or Kraken as the payment channel
FTX made an important procedural point for customers who onboard with a Distribution Service Provider. Once a creditor completes that onboarding, the creditor gives up the right to receive cash distributions directly from FTX. Instead, any payment that would otherwise have been sent by FTX will be transmitted directly to the selected provider, which then makes the funds available through the customer’s account on that platform.
The company used especially firm language in its notice. It said customers who onboard with a distribution provider have irrevocably elected to forgo direct cash distributions from FTX and have instructed FTX to send all amounts payable under the plan to the chosen provider instead. As a result, if creditors have questions about fund availability, account balances, or when the money becomes accessible on the platform, FTX said they should contact customer support at their selected Distribution Service Provider directly.
FTX warns about phishing and explains the rule for transferred claims
Alongside the payment update, FTX warned users to stay alert for phishing attempts. The company emphasized one point in particular: FTX will never ask users to connect a wallet. That warning is especially relevant during large-scale creditor repayments, because scammers often try to exploit uncertainty with fake emails, fraudulent login pages, and impersonated support channels. Any request involving wallet connections, private keys, or seed phrases should be treated with extreme caution.
FTX also clarified how transferred claims will be handled. Distributions for transferred claims will only be made to transferee holders of allowed claims that have been properly processed and officially registered with the Notice and Claims Agent. In practice, that means a claim transfer alone is not enough. The transfer must also be completed through the correct administrative process, and the recipient must be recognized in the claims system before any payout can be made.