Bitcoin (BTC) and Solana (SOL) decline as FTX Recovery Trust announces new round of distributions

The trust will distribute $5 billion to eligible creditors through BitGo or Kraken, which function as the distribution service providers.

Bankrupt cryptocurrency exchange FTX is set to begin its next round of creditor settlements in May, the company announced on Thursday.

The trust will distribute over $5 billion to eligible creditors through BitGo or Kraken, which function as the distribution service providers, beginning May 30.

The second installment of the Payer Recovery Plans will be paid to both Convenience and Non-Convenience class creditors who have met the pre-distribution requirements by the start date.

As part of the FTX bankruptcy plan, Dotcom Customer Entitlement Claims will receive a 72% recovery, while US Customer Entitlement Claims are set to receive 54% in distributions.

General Unsecured Claims and Digital Asset Loan Claims will each receive a 61% distribution. Meanwhile, Convenience Claims are expected to receive a 120% refund.

“We are pleased to announce that, assuming timely completion of the required pre-distribution steps, the second round of Payer Recovery Plan distributions will commence on May 30, 2024,” said Plan Administrator John Ray.

“This continues to demonstrate our focus on recovering more for creditors and resolving outstanding claims.”

Creditors will need to register with BitGo or Kraken to receive their funds. When customers register with the service providers, they will forfeit any claims to cash distributions.

FTX first began distributing funds to creditors in February, following its collapse in late 2022. The initial recipients of the refunds were Convenience Class creditors with claims of $50,000 or less.

The crypto market has seen a slight decline since the announcement, with Bitcoin (BTC) dropping toward $103,000 at publication time. Solana (SOL) is also down nearly 4%, according to CoinGecko data.

FTX unlocked 11.2 million SOL on March 1 to commence the initial distribution to creditors, which sent prices tumbling at the time.