- The second FTX payout covers multiple claim classes with distributions ranging from 54% to 120%.
- Creditors must complete KYC, tax forms, and onboarding with Kraken or Bitgo to receive payments.
- Court rulings limit reimbursements to claim values at petition filing dates, excluding users in 163 countries.
The FTX Recovery Trust began distributing $5 billion to eligible creditors on May 30, 2025. This marks the second round of payments under FTX’s Chapter 11 Plan of Reorganization. According to an official post on X, creditors in both Convenience and Non-Convenience Classes who completed pre-distribution requirements qualify for this payout.
Distribution Details and Payout Percentages
According to official statements, the second distribution covers several claim classes with varying reimbursement rates. Dotcom Customer Entitlement Claims receive 72% of their approved amounts. U.S. Customer Entitlement Claims will be paid at 54%. General Unsecured Claims and Digital Asset Loan Claims each receive 61%.
Convenience Claims are reimbursed at a notably higher rate of 120%. These percentages follow the priority structure outlined in the bankruptcy plan. Payments will be processed through designated partners Kraken and Bitgo, with recipients expected to receive funds within one to three business days.
To receive payments, creditors must complete specific steps before the distribution record date. Customers need to log in to the FTX Customer Portal to confirm claims. Completion of Know Your Customer (KYC) verification and submission of tax documents is mandatory. Additionally, onboarding with either Kraken or Bitgo is required to facilitate the transfer. FTX provides detailed onboarding instructions on its portal. This process ensures proper identification and compliance before funds release.
Background on the First Distribution and Market Impact
The initial creditor payout occurred on February 18, 2025, amounting to $1.2 billion. This round targeted creditors with claims below $50,000. Since the FTT token and FTX exchange collapse in November 2022, markets have closely watched these reimbursements. Liquidation of recovered assets could influence crypto prices and market volatility if converted to fiat or traded extensively.
The reimbursement process has generated criticism among creditors and customers. Court rulings determined that reimbursements would be calculated based on claim values at petition filing dates. This approach resulted in creditors recovering only 10% to 25% of their holdings’ value. Furthermore, residents of 163 countries, including Egypt, Iran, Russia, and Pakistan, remain ineligible for payouts. These exclusions have caused frustration and concern among affected users.
Advisories and Legal Oversight
FTX cautions users to avoid phishing scams and fraudulent websites resembling official portals. The company will never request wallet connections during the process. U.S. Bankruptcy Court filings and related documents remain publicly accessible for transparency. Legal counsel for FTX includes Sullivan & Cromwell LLP, with Alvarez & Marsal and Perella Weinberg Partners providing financial and investment advisory support.
John J. Ray III, FTX Recovery Trust Plan Administrator, emphasized the trust’s continued efforts to recover additional funds. The trust aims to resolve outstanding claims and facilitate future distributions as recovery proceeds. Upcoming payment dates and record dates will be announced accordingly to keep creditors informed throughout the process.
