FTX has scheduled May 30, 2025, as the date for its second distribution to creditors under its Chapter 11 bankruptcy plan. This is an important milestone on the long journey to make amends to those harmed by the exchange’s failure, as the firm continues to work through outstanding claims.
FTX’s bankruptcy started in November 2022 when an unexpected withdrawal surge uncovered an $8 billion deficit. Having been the third-largest crypto exchange, the collapse woke the industry and stranded over one million users with funds.
The first creditor repayment, intended for small claims, was made in early 2025, while the upcoming one will focus on larger creditors. This action is important as part of an ongoing effort to compensate those affected.
FTX Second Payout Breakdown
FTX will distribute over $5 billion to creditors beginning May 30, 2025, marking the second major payout under its Chapter 11 plan. Payments will be made through BitGo or Kraken within 1 to 3 business days after the distribution date.
The payout rates vary by claim class: Dotcom Customer Entitlement Claims get 72%, U.S. Customer Entitlement Claims 54%, General Unsecured and Digital Asset Loan Claims 61% each, and Convenience Claims receive 120%. This distribution will cover both Convenience and Non-Convenience Classes, focusing on claims larger than those in the first round in February.
Payout Eligibility: What Creditors Need to Know
To receive the May 30 payout, creditors must complete several steps on the FTX Customer Portal. This includes identity verification under KYC rules, submitting tax forms, and registering with either BitGo or Kraken as their distribution agent.
Creditors who onboard with a distribution provider waive direct payments from FTX and must contact their chosen platform for any questions regarding fund access. Missing these steps may delay or forfeit payments, so timely compliance is crucial.
BitGo and Kraken, experienced in crypto asset management, will handle the distribution securely, offering payments in cash or stablecoins depending on the creditor’s preference and regulations.
John J. Ray III, FTX’s Plan Administrator, praised the team for recovering billions and the global cooperation involved. He called this payout part of history’s largest and most complex crypto bankruptcy.
Further distributions will follow, with updates shared as the process unfolds. FTX urged creditors to stay alert to official messages and warned them against scams. They emphasized never requesting wallet connections or private keys during this process.
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