FTX Creditors to Receive Over $5 Billion as Payouts
In consistent with its Chapter 11 Plan of Reorganisation, FTX Trading Ltd, the collapsed crypto exchange once chaired by Sam Bankman-Fried, will start large-scale distribution of over $5 billion to its creditors starting 30 May 2025.
This second wave of disbursements is part of the company’s broader Chapter 11 reorganisation plan and signals progress in repaying victims of the 2022 FTX collapse.
Creditors with approved claims in designated classes will receive their payments through selected service providers, either BitGo or Kraken, within one to three business days following the May 30 distribution date.
According to the updated pay-out 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 to receive a 72% recovery. The US-based customers, designated as Class 5B, can expect a 54% return.
General unsecured creditors and digital asset loan holders, categorised in Classes 6A and 6B respectively, will receive 61% each. 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.
John J. Ray III, the Plan Administrator of the FTX Recovery Trust, said that these first non-convenience class distributions are an important milestone for the company.
“The scope and magnitude of the FTX creditor base makes this an unprecedented distribution process, and the announcement reflected the outstanding success of the recovery and coordination efforts of our team of professionals. Our focus remains on recovering more for creditors and resolving outstanding claims,” he added.
The recovery effort involves key advisory firms Sullivan & Cromwell LLP and Alvarez & Marsal North America, LLC.
Claimant Requirements
Before receiving any payment, 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.
Customers who have transferred their claims must also ensure 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 company said.
