FTX Reorganization Team Announces Second Round of Fund Distribution
FTX’s reorganization team announced today that, according to the contents of its reorganization plan, FTX will officially initiate the second round of fund distribution for “Convenience” and “Non-Convenience” approved creditors starting from May 30, 2025 (the “Second Round Distribution”).
Qualified creditors who have completed all pre-distribution procedures will receive funds through their chosen distribution service providers (i.e., BitGo or Kraken). Funds will be credited to user accounts within 1 to 3 business days starting from May 30. Subsequent distribution record dates and payment dates for other batches will be announced separately.
According to the reorganization plan, it is anticipated that $5 billion will be distributed in the second round, with funds allocated according to the “waterfall repayment priority” established in the restructuring plan.
Class 5A (Dotcom International Customer Claims): will receive 72% repayment.
Class 5B (U.S. Domestic Customer Claims): will receive 54% repayment.
Class 6A (General Unsecured Claims) and Class 6B (Digital Asset Lending Claims): will each receive 61% repayment.
Class 7 (Convenience Small Claims): will receive 120% repayment.
Here, Class 5A refers to any FTX creditor with a claim amount greater than $50,000, while Class 7A refers to any FTX creditor with a claim amount less than $50,000. John Ray, the manager of the FTX Recovery Trust reorganization plan, stated in a letter:
“This marks our first distribution for non-convenience class creditors and is a significant milestone. Given the large number of FTX creditors, the entire distribution process is highly challenging. Today’s announcement represents extraordinary progress in asset recovery and coordination. Going forward, we will continue to focus on reclaiming more assets and addressing unresolved creditor matters.”