FTX Trading Ltd. and the FTX Recovery Trust today announced they will distribute over $5 billion to eligible creditors starting May 30, 2025, as part of the second payout under its bankruptcy reorganization plan.
The payments, tied to FTX’s Chapter 11 Plan of Reorganization, will provide eligible creditors with a substantial portion of their allowed claims, marking a pivotal moment in the embattled exchange’s efforts to recover from its catastrophic downfall in November 2022.
The Second Distribution includes payouts across both Convenience and Non-Convenience Classes. According to court documents and details released Friday, distributions will be as follows:
- Class 5A Dotcom Customer Entitlement Claims: 72%
- Class 5B U.S. Customer Entitlement Claims: 54%
- Classes 6A General Unsecured Claims & 6B Digital Asset Loan Claims: 61%
- Class 7 Convenience Claims: 120%
The funds will be delivered via BitGo or Kraken, the court-approved distribution partners, with recipients expected to receive their money within one to three business days after the May 30 disbursement.
A Long Road to Recovery
The payout represents a hard-earned milestone for the FTX Recovery Trust, led by restructuring veteran John J. Ray III, who took over as CEO in the immediate aftermath of founder Sam Bankman-Fried’s ouster and criminal indictment. Ray called the second round of distributions “an important milestone,” praising the “outstanding success” of the asset recovery effort and reiterating the team’s continued focus on maximizing returns for creditors.
The payout ratios—especially the 120% for Convenience Claims—reflect a surprisingly robust recovery, considering the scale of the $8 billion hole in FTX’s balance sheet when it filed for bankruptcy. Legal analysts and industry observers say the progress has exceeded initial expectations, driven by aggressive asset recovery, favorable crypto market conditions, and strategic sales of FTX’s equity stakes in companies such as Anthropic, Solana, and Mysten Labs.
FTX’s court filings revealed earlier this year that the estate had secured over $14.5 billion in assets—an astonishing turnaround for a firm whose internal controls were described by Ray as “a complete failure.”
Institutional-Grade Process
Despite the progress, the payout process remains legally and operationally complex. Creditors must have completed KYC verification, submitted required tax documents, and onboarded with BitGo or Kraken via the FTX Claims Portal. Those who fail to meet these conditions by the next record date will miss out on future distributions until their eligibility is restored.
Notably, by choosing a Distribution Service Provider, customers relinquish their right to receive distributions directly from FTX, irrevocably delegating the payout to their selected provider. The Trust has emphasized that issues related to fund receipt post-distribution should be directed to BitGo or Kraken’s customer support, not the FTX Recovery Trust.
Bankruptcy, Trials, and a Changing Crypto Landscape
The news comes amid the broader fallout of the FTX scandal, which has reshaped crypto regulation and investor sentiment globally. Sam Bankman-Fried was sentenced to 25 years in federal prison in March 2025 for fraud, conspiracy, and money laundering, following a high-profile trial that exposed deep-rooted failures in risk management and governance at the once-celebrated exchange.
Meanwhile, U.S. regulators and international watchdogs have increased scrutiny of centralized crypto platforms, with the FTX saga serving as a case study in the dangers of opaque corporate structures and insufficient oversight.
Yet, ironically, the crypto market rebound—buoyed by a wave of spot Bitcoin ETF approvals and renewed institutional interest—has aided FTX’s ability to return funds to creditors. Surging asset prices, especially in early 2025, allowed the estate to liquidate holdings at favorable valuations, contributing significantly to the distribution pool.
What’s Next for Creditors
FTX’s announcement hints at further distributions ahead, but does not specify the timeline or size of upcoming payments. Future payouts will depend on the resolution of remaining litigation and claims adjudications, as well as potential clawback actions and asset recoveries still in progress.
A small but vocal group of FTX creditors continues to advocate for “in-kind” crypto distributions—rather than cash conversions—arguing they would have recovered more had the estate distributed assets in their original form. However, the court-approved Plan of Reorganization prioritizes fiat-equivalent payouts based on bankruptcy-era valuations.
In a recent creditor meeting, Ray reiterated that the team’s “fiduciary duty is to maximize estate value” while adhering to the Bankruptcy Code. Legal experts say that while creditor frustrations are understandable, the Plan offers one of the best recovery rates in recent crypto bankruptcy history.
As May 30 approaches, tens of thousands of creditors may finally see partial resolution to a saga that began with what was once the world’s second-largest crypto exchange and ended in a cautionary tale of excess, deception, and collapse. While many are still counting losses, FTX’s second distribution marks an unexpected and hard-fought return of funds in a crypto landscape that is slowly rebuilding trust.
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