The long-awaited FTX creditor distributions are finally becoming reality, with the FTX Recovery Trust announcing a massive $5 billion payout beginning May 30, 2025. This comprehensive guide breaks down everything creditors need to know about the upcoming distributions and claim process.
Key Distribution Details
The second major distribution phase will commence through approved service providers BitGo and Kraken, with eligible creditors expected to receive funds within 1-3 business days of the May 30 start date. This distribution marks a significant milestone in the FTX bankruptcy proceedings.
Distribution Breakdown by Claim Class:
- Class 5A (Dotcom Customer Claims): 72% distribution
- Class 5B (U.S. Customer Claims): 54% distribution
- Class 6A/6B (General Unsecured/Digital Asset Loans): 61% distribution
- Class 7 (Convenience Claims): 120% distribution
Important Considerations for Creditors
FTX Recovery Trust Administrator John J. Ray III emphasized the unprecedented scale of this distribution process, stating: “The scope and magnitude of the FTX creditor base makes this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts.”
Distribution Service Provider Selection
Creditors should note several crucial points regarding distribution service providers:
- Selecting a provider (BitGo or Kraken) forfeits direct cash distribution rights
- All payments will route through the chosen provider
- Support inquiries must be directed to the selected provider
Security Warnings and Best Practices
In light of recent crypto security threats, FTX has issued important security advisories:
- Be vigilant against phishing attempts
- FTX will never request wallet connections
- Only transferee holders with properly registered claims will receive distributions
Frequently Asked Questions
When will creditors receive their funds?
Distributions will begin May 30, 2025, with funds expected to arrive within 1-3 business days.
Can I change my distribution service provider?
Once selected, the choice of distribution service provider is irrevocable.
What happens to unclaimed distributions?
The trust will announce additional distribution dates for eligible creditors who complete requirements after the initial distribution.
Next Steps for Creditors
To ensure smooth distribution processing, creditors should:
- Verify their claim status
- Complete all pre-distribution requirements
- Select and register with a distribution service provider
- Monitor official communications for updates
This distribution marks a crucial step in the FTX recovery process, with the trust continuing efforts to recover additional assets for creditors while resolving outstanding claims.