FTX to Begin Distributing Over $5 Billion to Creditors Starting May 30, 2025

This second wave of disbursements comes as part of the company's broader Chapter 11 reorganization plan and signals progress in repaying victims of the 2022 FTX collapse.

FTX Trading Ltd., the bankrupt crypto exchange once headed by Sam Bankman-Fried, will commence distributing over $5 billion to its creditors on May 30, 2025. This second wave of disbursements, part of the company’s broader Chapter 11 reorganization plan, is expected to see several classes of creditors receiving a portion of their claims following the 2022 FTX collapse.

The bulk of the payments will be distributed by May 30, with creditors holding approved claims in designated classes set to receive their funds within one to three business days through selected service providers, either BitGo or Kraken.

Payout Structure Detailed for Various FTX Creditor Classes

According to the updated payout structure from FTX, creditors fall into several defined categories with varying recovery percentages. Customers in Class 5A, those associated with the FTX.com platform, are slated for a 72% recovery. U.S.-based customers, designated as Class 5B, can expect a 54% return.

General unsecured creditors and digital asset loan holders, categorized in Classes 6A and 6B respectively, will each receive 61%. Notably, those in Class 7 Convenience Claims are set for a full 120% distribution, a move intended to encourage smaller claimants to opt for streamlined processing.

This move signals progress in winding down the FTX bankruptcy proceedings.

Claimant Requirements Before Receiving Payment

Before any payment can be received, eligible FTX claimants must complete several key steps. These include logging into the FTX claims portal, completing Know Your Customer (KYC) verification, submitting necessary tax documentation, and onboarding with one of the designated distribution providers, BitGo or Kraken.

For customers who have had their claims transferred, it's crucial to ensure that these transfers are accurately reflected in the official registry following a 21-day notice period without objections.

In addition to these requirements, FTX is issuing a strong warning to creditors about a growing risk of phishing attempts. Fraudulent emails or fake websites may try to mimic official FTX communications.

To protect their assets and personal information, customers are strongly advised not to connect wallets or share sensitive information outside the official FTX claims portal.

The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.