FTX To Begin $5 Billion Creditor Payouts Starting May 30
Cryptocurrency exchange FTX is set to initiate the repayment of over $5 billion to approved creditors in the second distribution, starting from May 30, 2025, through Bitgo or Kraken. This significant move follows the Chapter 11 Plan of Reorganization and marks a major milestone for FTX and its creditors.
The FTX Recovery Trust recently announced the commencement of distributions to approved creditors in accordance with the Chapter 11 Plan. Eligible creditors who have fulfilled all pre-distribution requirements can expect to receive funds from their chosen Distribution Service Provider, either Bitgo or Kraken, within 1 to 3 business days from May 30, 2025, with more distribution dates to follow in the future.
During the Second Distribution, different classes of claims will receive varying percentages of distributions based on the outlined priorities in the Plan. Class 5A Dotcom Customer Entitlement Claims, Class 5B U.S. Customer Entitlement Claims, Class 6A General Unsecured Claims, Class 6B Digital Asset Loan Claims, and Class 7 Convenience Claims are among the beneficiaries of this distribution process.
Plan Administrator John J. Ray III expressed the importance of these distributions for FTX, emphasizing the dedication to maximizing recoveries for creditors and resolving outstanding claims. Customers opting to onboard with a Distribution Service Provider will forego their right to direct cash distributions from FTX, with payments processed through their selected provider.
FTX reminded users to remain vigilant against phishing attempts and clarified that distributions for transferred claims would only be made to transferee holders of approved claims registered with the Notice and Claims Agent. By directing distributions through Distribution Service Providers, customers ensure a streamlined process and efficient handling of their entitled funds.
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