- FTX will begin distributing over $5B to eligible creditors starting May 30 via BitGo and Kraken.
- Based on claim classes, customers will receive between 54% and 120% of their balances.
- Customers must contact BitGo or Kraken for payout issues, not the FTX Recovery Trust directly.
Two and a half years after its collapse, FTX is preparing to return funds to its remaining creditors. On May 15, FTX announced that it would distribute more than $5 billion starting May 30. The funds will go to customers who have waited since the exchange filed for bankruptcy in November 2022.
The second wave of reimbursements will be processed through BitGo and Kraken. Customers should expect to receive payments within one to three business days after May 30. These payments follow the initial $1.2 billion distribution that began in February.
According to the plan, customers fall into different claim classes with varying payout percentages. Class 5A Dotcom Customer Entitlement Claims are set to receive 72% of their balances, while Class 5B U.S. Customer Entitlement Claims will get 54%. Both Class 6A General Unsecured Claims and Digital Asset Loan Claims are slated for a 61% payout. Meanwhile, Class 7 Convenience Claims will be fully repaid at 120%.
The remaining payouts for other creditors will be issued at a later date, which has yet to be announced. FTX calculated payouts using crypto prices from its 2022 bankruptcy filing, when Bitcoin was worth around $20,000. With Bitcoin now trading above $100,000, many former customers have expressed concerns about being reimbursed based on the much lower 2022 valuations.
Despite this, the estate said 98% of eligible creditors will receive at least 118% of their allowed claim value in cash. Creditors who have chosen to receive payouts through BitGo or Kraken agreed to have those platforms manage their distributions. This means they have waived the right to receive cash directly from FTX.
Related: FTX Files Lawsuit Against Issuers to Recover Undelivered Tokens
John J. Ray III, who leads the FTX Recovery Trust, said the payouts mark a major milestone. He credited the team’s coordination and recovery efforts for the success. Ray added that the trust is still working to recover more funds and close pending claims.
The collapse of FTX triggered legal actions against several executives. Founder Sam Bankman-Fried received a 25-year prison sentence earlier this year. Other former leaders, including Caroline Ellison and Ryan Salame, also received prison terms.
FTX customers with questions about their payments must contact BitGo or Kraken directly. FTX will not handle individual payout inquiries. More updates about future distributions are expected soon.
