FTX Recovery Trust will distribute over $5 billion to creditors starting from May 30, 2025, according to the approved Chapter 11 bankruptcy restructuring plan.
FTX Recovery Trust confirmed on Thursday that the fund will distribute over $5 billion to creditors starting from May 30, 2025, according to the approved Chapter 11 bankruptcy restructuring plan. This is the second distribution in the restructuring plan and is considered an important milestone in resolving the aftermath of this cryptocurrency exchange's collapse.
"The first distributions for classes outside of convenience are an important milestone for FTX," said John J. Ray III, Plan Administrator of the recovery fund, while emphasizing the complex scale of coordinating payments for tens of thousands of creditors.
The payment will cover various claim classes with significant recovery rates. Specifically, Class A (Dotcomtechcom Customer Entitlements) will recover recover 72% of claim value, while Class 5B U Customer Entitlements) 54% of the value. 6UnsClaims) and Class 6 6B Digitalital Asset Loan Claims) will both recover 61% of the value. value notably, Class 7 (Convenience Claims) will recover up to 120% of the recorded value.
Payment Conditions and Procedures for Creditors
To receive payment, creditors must meet specific specific conditionsities. complete the Know Know Your Customer (Customer Customer (KYC)Yand related tax forms. Additionally, they need to complete the ononboarding process with Bitgo or Kraken – the two distribution partners designated designated by FTX to handle payments.
For transferred claims, theitors the processing must be completed 21 days before the record date. Importantly, creditors will not receive original cryptocurrencies but only equivalent cash, with value fixed at the asset price in November 2022 – when the market fell to low levels, which which is unfavoritors.
FTX also issued an important security warning about the risk of phishing on the customer portal and confirmed they will never request never request users to connect cryptocurrency connect cryptocurrency wallets. next payment schedule and related claims will be announced published be onX in fiAll bankruptcy documents, including the restructplan,, remain accessible through the U.S. Bankruptcy Court Claims Portal.
< p about this distribution positively impacted the marketket, with the exchange's FTT token (before bankruptcy) increasing 12% after the announcement, maintaining a price of $1.26. However, this is 98.5% lower than the of the $84.18 recorded in . This phenomenon is similar to the case of CE(celsius), cryptocurrencies maintain market value despite lacking lacking substantial financial basis, reflecting high speculation in this market.
