FTX Trading Ltd. and the FTX Recovery Trust announced today that distributions under the FTX Chapter 11 Plan of Reorganization will resume on May 30, 2025.
The forthcoming round, known as the Second Distribution, will be made to eligible creditors in the Convenience and Non-Convenience Classes who have completed all required steps, including KYC verification, tax form submission, and onboarding with one of FTX’s designated Distribution Service Providers—BitGo or Kraken.
Details of the Second Distribution
According to FTX, eligible creditors should expect to receive funds from their chosen service provider within one to three business days following May 30.
The process marks the first non-convenience class distribution under the plan and is guided by the waterfall structure defined in the reorganization blueprint.
Specifically, Dotcom Customer Entitlement Claims (Class 5A) will receive a 72% distribution, U.S. Customer Entitlement Claims (Class 5B) will receive a 54% distribution, General Unsecured Claims (Class 6A) and Digital Asset Loan Claims (Class 6B) will both receive 61%, and Convenience Claims (Class 7) will be paid out at 120%.
Plan Administrator John J. Ray III noted, “These first non-convenience class distributions are an important milestone for FTX.”
“The scope and magnitude of the FTX creditor base make this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals,” he added.
Key Requirements and Next Steps
FTX has also reiterated that customers must complete several steps before becoming eligible for any current or future distributions.
This includes logging into the FTX Customer Portal, completing KYC procedures, submitting necessary tax documentation, and onboarding with either BitGo or Kraken.
Customers who have opted for these service providers have effectively chosen to forgo direct cash distributions from FTX and instead receive payment through their selected provider. Any inquiries regarding fund availability should be directed to the provider’s customer support team.
As the process unfolds, FTX said it will continue to announce future record and payment dates. For transferred claims, only the transferee officially listed on the claims register will receive distributions, provided the 21-day notice period has passed without objection.
FTX Executives Sentenced: Where Are They Now?
FTX, once a dominant force in the crypto exchange space, collapsed in November 2022 after facing a severe liquidity crisis. Within days, the company filed for bankruptcy, and its CEO, Sam Bankman-Fried (SBF), stepped down. He was later convicted and sentenced to 25 years in prison.
Among those affected was investor Kavuri, who claimed to have endured two years of financial distress after losing over $2 million in FTX’s downfall.
Legal proceedings against four other former FTX and Alameda Research executives wrapped up by the end of 2024. This led to Caroline Ellison and Ryan Salame receiving prison sentences, while Nishad Singh and Gary Wang were given time served.
FTX’s restructuring plan, approved in October 2024, prioritized repayments to users with claims under $50,000. Around 98% of affected users will receive 119% of their declared funds.
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