FTX Begins Second $5 Billion Distribution to Eligible Claim Holders
The post FTX Begins Second $5 Billion Distribution to Eligible Claim Holders appeared on BitcoinEthereumNews.com.
FTX has started its second distribution of over $5 billion to holders of allowed claims under its Chapter 11 Plan of Reorganization. This payment is made to claimants in both Convenience and Non-Convenience Classes who have met the required pre-distribution steps. Customers and creditors can expect to receive these funds within one to three business days from May 30. FTX Begins Second $5 Billion Distribution The FTX payout follows a specific priority order, as outlined in the Plan of Reorganization. Allowed Class 5A Dotcom Customer Entitlement Claims are receiving a 72% distribution of their claims. Meanwhile, Allowed Class 5B U.S. Customer Entitlement Claims are allocated 54%. These classes represent a large segment of FTX’s creditors. For Allowed Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims, the distribution rate stands at 61%. Allowed Class 7 Convenience Claims are receiving a 120% payout, exceeding the full claim value. This varied distribution reflects the hierarchy and conditions set out in the court-approved plan. John J. Ray III, Plan Administrator of the FTX Recovery Trust, stated, “Today’s announcement represents continued progress returning cash to FTX’s customers and creditors. I am proud of the outstanding success of the recoveries to date. Our work continues on recovering more for creditors and resolving outstanding claims.” FTX Payment Method and Timing Distributions will be made through FTX’s designated service providers, Kraken and BitGo. Eligible claimants who have completed the necessary Know Your Customer (KYC) verification and tax form submission should expect payments within one to three business days from May 30, 2025. The company has emphasized that timely completion of onboarding with these service providers is essential to receive payments. The payment method primarily uses stablecoins such as USDC and USDT. This choice aims to accelerate the distribution process by avoiding delays often encountered…
