FTX creditors to receive over $5 billion in distributions starting May 30

The estate will pay out to four classes of creditors, with recoveries ranging from 54% to 120% of their original claims.

Bankrupt cryptocurrency exchange FTX is set to begin distributing billions of dollars to creditors as part of the second phase of its bankruptcy proceedings, the FTX Recovery Trust said Thursday.

The estate will pay out to four classes of creditors, with recoveries ranging from 54% to 120% of their original claims, according to a statement. The amounts are based on the U.S. dollar value of customer holdings at the time of FTX’s collapse in November 2022.

Two custodians, BitGo and Kraken, are expected to transfer funds to eligible claimants in one to three business days from May 30.

The payout breakdown includes “Class 5” creditors, or Alameda Research counterparties, lenders, and trading vendors, who are set to receive between 54% and 72% of approved claims. Small, unsecured claimants are recovering about 61%. Meanwhile, intercompany claims involving FTX’s various subsidiaries are being repaid at 120%.

More than 90% of all claims have entered the distribution pipeline, the Repayment Trust said in its release.

The second phase of the FTX bankruptcy recovery plan is set to conclude in August. A third and final phase will see the remaining creditors, including employees and the FTX.com and FTX U.S. joint ventures, receive their respective shares of the remaining proceeds.