The FTX Recovery Trust Will Distribute More Than $5 Billion to Creditors Starting May 30

The FTX Recovery Trust explained on Thursday that it will distribute more than $5 billion to creditors

The FTX Recovery Trust is set to distribute more than $5 billion to creditors starting May 30, 2025, according to a recent filing. This payout, the second under FTX’s reorganization plan, will see creditors across multiple claim classes receive varying percentages of their dues.

The distribution, initially reported by Bloomberg, will see Class 5A (Dotcom Customer Entitlements) receive 72% of claims, while Class 5B (U.S. Customer Entitlements) will get 54%. Classes 6A (General Unsecured Claims) and 6B (Digital Asset Loan Claims) will each receive 61%.

Additionally, Class 7 (Convenience Claims) will recover 120%, according to the filing. This payout, a critical milestone in the FTX bankruptcy case, marks a turning point for the company and its creditors.

The report highlights the enormity of the task at hand, especially considering the scale of creditor coordination required.

"These first non-convenience class distributions are an important milestone for FTX," said Plan Administrator John J. Ray III. "The cooperation of the administrative law judge, the FTX executives, and our legal and financial advisors in making these distributions possible is remarkable, given the size and complexity of the estate."

The filing also mentions that eligible creditors must have completed Know Your Customer (KYC) verification, tax forms, and onboarded with Bitgo or Kraken, FTX’s two designated distribution partners. The report further explains that transferred claims require processing 21 days before record dates.

Claimants in the bankruptcy proceedings will not be recovering their original crypto holdings but will instead receive cash equivalents pegged to the value of those assets as of November 2022. This timing proves unfavorable for creditors, as cryptocurrency valuations had plummeted to significant lows during that period.

The company also warns of phishing scams mimicking its customer portal, emphasizing it will never request wallet connections. The notice concludes by stating that future distribution dates and requirements will be posted on the FTX Customer Portal and court dockets. Bankruptcy documents, including the reorganization plan, remain accessible via the U.S. Bankruptcy Court’s claims portal.

FTX’s pre-bankruptcy exchange token FTT surged 12% with the news, keeping its price above the $1 threshold. As of this update, FTT is trading at $1.26—a staggering 98.5% decline from its 2021 peak of $84.18. Much like the token celsius network (CEL), it stubbornly retains market value despite the absence of any substantive backing, leaving observers to ponder the peculiar resilience of speculative assets.