Bitcoin Magazine
FTX to Begin $5 Billion Creditor Payouts Starting May 30
FTX Recovery Trust announced that they will begin distributions of more than $5 billion to approved creditors on May 30, 2025, as outlined in the Chapter 11 Plan of Reorganization. This will apply to holders of allowed claims in the Plan’s 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 (a “Distribution Service Provider”), either Bitgo or Kraken, within 1 to 3 business days from May 30, 2025,” the company stated. Additional distribution dates will be announced in the future.
In the Second Distribution, in accordance with the waterfall priorities set forth in the Plan:
“These first non-convenience class distributions are an important milestone for FTX,” said the Plan Administrator of the FTX Recovery Trust John J. Ray III. “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.”
Customers who onboard with a Distribution Service Provider will forfeit their right to receive cash distributions directly from FTX, with payments instead going through their chosen provider.
“Customers should be aware that by onboarding with a Distribution Service Provider, they have irrevocably elected to forego their right to receive cash distributions from FTX and have instead directed FTX to pay, directly to such Distribution Service Provider, any distributions to which they otherwise would be entitled to under the Plan,” said FTX. “If customers have any questions related to the availability of the funds in their account with their selected Distribution Service Provider, they should contact customer support at their Distribution Service Provider directly.”
The company warned 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.
This post FTX to Begin $5 Billion Creditor Payouts Starting May 30 first appeared on Bitcoin Magazine and is written by Oscar Zarraga Perez.
Full story here:
FTX to Begin $5 Billion Creditor Payouts Starting May 30
FTX Recovery Trust announced that they will begin distributions of more than $5 billion to approved creditors on May 30, 2025, as outlined in the Chapter 11 Plan of Reorganization. This will apply to holders of allowed claims in the Plan’s 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 (a “Distribution Service Provider”), either Bitgo or Kraken, within 1 to 3 business days from May 30, 2025,” the company stated. Additional distribution dates will be announced in the future.
In the Second Distribution, in accordance with the waterfall priorities set forth in the Plan:
- 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 first non-convenience class distributions are an important milestone for FTX,” said the Plan Administrator of the FTX Recovery Trust John J. Ray III. “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.”
Customers who onboard with a Distribution Service Provider will forfeit their right to receive cash distributions directly from FTX, with payments instead going through their chosen provider.
“Customers should be aware that by onboarding with a Distribution Service Provider, they have irrevocably elected to forego their right to receive cash distributions from FTX and have instead directed FTX to pay, directly to such Distribution Service Provider, any distributions to which they otherwise would be entitled to under the Plan,” said FTX. “If customers have any questions related to the availability of the funds in their account with their selected Distribution Service Provider, they should contact customer support at their Distribution Service Provider directly.”
The company warned 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.
This post FTX to Begin $5 Billion Creditor Payouts Starting May 30 first appeared on Bitcoin Magazine and is written by Oscar Zarraga Perez.
Full story here:
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