FTX to Disburse Over $5 Billion in Second Creditor Payout

FTX has confirmed it will initiate its second round of creditor distributions on May 30, 2025, in line with its Chapter 11 Plan of Reorganization. According to a recent press release , the upcoming distribution will exceed $5 billion and be allocated to claimants across several designated creditor classes.  FTX Recovery Trust stated that eligible participants must have completed all pre-distribution steps to receive funds through their selected service providers. This event marks the first wave of non-convenience class payouts under the approved reorganization structure. Once a leading name in the U.S. cryptocurrency exchange market, FTX collapsed following a rapid liquidity crisis. The company filed for bankruptcy in November 2022 after users rushed to withdraw funds amid revelations of financial misconduct.  Reports indicated that founder Sam Bankman-Fried had diverted approximately $8 billion in customer assets to Alameda Research, an FTX trading firm. Distribution Amounts by Creditor Class Notably, according to details outlined in the Plan, each allowed claim class will receive specific percentage allocations based on a priority waterfall. The largest group is Class 5A Dotcom Customer Entitlement Claims. Specifically, this set will get a 72% distribution. Meanwhile, Class 5B U.S. Claims comes next and will get a 54% payout. Other classes, like the Digital Asset Loan and General Unsecured Claims, will receive 61% of their approved claim amounts. Separately, the Convenience Claims grouped under Class 7 will get a 120% distribution. This payment framework follows the structured guidelines detailed in FTX’s bankruptcy resolution and reflects distribution percentages proportional to each class’s claim value. Timing and Distribution Logistics FTX specified that distributions will be processed through either Bitgo or Kraken, depending on each creditor's selection. Those who meet the requirements can expect to receive their payments within one to three business days following the May 30 start date. Distribution Service Providers will deliver funds directly to users’ accounts, following prior agreements made during the onboarding process. Importantly, customers who completed onboarding with a provider have formally waived the option to receive direct cash payments from FTX. Instead, they have authorized distributions to be transferred through their chosen provider. This method aligns with the operational plan and ensures streamlined payouts. FTX Sues Two Firms Over Token Transfer Failures This news came only weeks after the FTX initiated legal action against two crypto-related firms for allegedly failing to deliver digital assets as previously agreed.  According to filings, the entities named in the lawsuit are NFT Stars Limited and Kurosemi Inc., accused of non-compliance with contractual obligations to transfer specific tokens to the now-defunct exchange.