FTX Trading Ltd. and the FTX Recovery Trust have officially announced that a $5 billion second distribution will be made to eligible creditors starting May 30, 2025.
This substantial payout comes as part of the crypto exchange’s Chapter 11 reorganization plan, which aims to compensate creditors after the platform’s dramatic collapse in November 2022. The announcement was made via a May 15 press release, confirming that this tranche will be directed toward creditors who have allowed claims under the reorganization framework.
The distribution will include creditors from both the Convenience and Non-Convenience Classes, with funds disbursed through BitGo and Kraken. According to the recovery plan, eligible creditors can expect to receive their payouts within one to three business days following the distribution date. This marks the second phase of FTX’s creditor repayment strategy, following the initial distribution in February 2025. An official update regarding subsequent payment dates is expected once this phase concludes, indicating FTX’s effort to maintain transparency as it navigates through the largest bankruptcy in crypto history.
The distribution breakdown has been confirmed by John J. Ray III, the plan administrator of the FTX Recovery Trust. Class 5A Dotcom Customer Entitlement Claims will receive 72%, Class 5B U.S. Customer Entitlement Claims are set for a 54% distribution, and General Unsecured Claims (Class 6A) along with Digital Asset Loan Claims (Class 6B) will be allocated 61%. Remarkably, those with Convenience Claims (Class 7) are expected to get a 120% payout, marking a significant recovery for smaller-scale creditors. This approach aims to provide balanced recovery, addressing both major institutional investors and smaller retail holders who were affected by the collapse.
The announcement has also sparked optimism in the market, with the FTX Token (FTT) surging by 13% to $1.33 shortly after the news broke. The token’s recovery is particularly notable given its sharp decline from $25 to $0.87 following the exchange’s bankruptcy in late 2022. The distribution plan reflects FTX’s commitment to making creditors whole while reviving trust within the crypto community. As recovery efforts continue, stakeholders remain cautiously optimistic about the platform’s ability to fulfill its obligations. With the second tranche set to be completed soon, eyes are now on FTX’s next steps and whether it can fully restore its reputation in the long run.
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