FTX to Begin $5 Billion Creditor Payouts Starting May 30
The leading cryptocurrency exchange FTX has announced that it will initiate the repayment process for approved creditors in the second distribution, totaling more than $5 billion, starting on May 30, 2025. This significant development follows the Chapter 11 Plan of Reorganization put forth by the FTX Recovery Trust, marking a crucial step in the resolution of outstanding claims.
Eligible creditors who have met the pre-distribution requirements can anticipate receiving their funds through either Bitgo or Kraken, selected as the Distribution Service Providers, within 1 to 3 business days from May 30. Further distribution dates will be communicated in due course to ensure a streamlined payout process for all parties involved.
In this Second Distribution phase, the repayment prioritization is clearly outlined:
– Class 5A Dotcom Customer Entitlement Claims will receive a 72% distribution.
– Class 5B U.S. Customer Entitlement Claims will receive a 54% distribution.
– Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims will each receive a 61% distribution.
– Class 7 Convenience Claims are set to receive a 120% distribution, reflecting the favorable progress made in the recovery efforts.
The Plan Administrator of the FTX Recovery Trust, John J. Ray III, emphasized the significance of these distributions, highlighting the meticulous coordination and resilience of the creditor base. Customers opting for a Distribution Service Provider will redirect their cash distributions through their chosen platform, ensuring a seamless transaction process and effective fund allocation.
FTX cautions users against potential phishing attempts and stresses the importance of verifying the authenticity of any payment requests. Moreover, customers electing to transfer their claims must adhere to the specified registration guidelines to receive the entitled distributions promptly and securely.
This pivotal announcement underscores FTX’s commitment to resolving creditor concerns efficiently and prioritize transparent communication throughout the distribution process. As the cryptocurrency landscape evolves, regulatory compliance and financial integrity remain at the forefront of FTX’s operational agenda, ensuring a robust ecosystem for all stakeholders.
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