FTX Trading Ltd. and the FTX Recovery Trust have made a significant announcement regarding the upcoming distributions under the FTX Chapter 11 Plan of Reorganization. The Second Distribution is scheduled to resume on May 30, 2025, benefiting eligible creditors in the Convenience and Non-Convenience Classes who have completed all required steps.
The Second Distribution is set to be processed through designated Distribution Service Providers, BitGo or Kraken, ensuring a seamless transfer of funds to eligible creditors. According to FTX, creditors can expect to receive their funds within one to three business days after May 30.
This distribution marks a significant milestone as it is the first non-convenience class distribution under the reorganization plan. The distribution percentages for each class have been outlined in the reorganization blueprint, with Dotcom Customer Entitlement Claims, U.S. Customer Entitlement Claims, General Unsecured Claims, Digital Asset Loan Claims, and Convenience Claims all set to receive their respective payouts.
Plan Administrator John J. Ray III emphasized the importance of these distributions, highlighting the unprecedented nature of the process given the scale of FTX’s creditor base. He commended the recovery and coordination efforts of the team of professionals involved in the distribution process.
In order to be eligible for current and future distributions, customers must complete several key requirements, including KYC verification, tax form submission, and onboarding with either BitGo or Kraken. Customers who opt for these service providers will receive their payments through them, rather than directly from FTX.
As the distribution process unfolds, FTX will continue to announce future record and payment dates. Customers with transferred claims must ensure that the transferee listed on the claims register is the correct recipient to receive distributions.
The history of FTX’s collapse in 2022, subsequent legal proceedings against former executives, and the approval of the restructuring plan in 2024 are all part of the company’s journey towards recovery. The focus on repaying users with claims under $50,000 and the commitment to provide 119% of declared funds to 98% of affected users demonstrate FTX’s dedication to resolving the aftermath of the liquidity crisis.
The upcoming Second Distribution wave on May 30, 2025, signals a step forward in FTX’s recovery process, aiming to deliver up to 120% creditor payouts to eligible parties. Stay tuned for more updates on this evolving story.