The FTX Recovery Trust is set to disburse approximately $1.6 billion to creditors on September 30, marking the third payout under the Chapter 11 reorganization plan. This distribution aims to provide partial relief to those affected by the exchange's collapse in 2022.
The payments will be made via Bitgo, Kraken, or Payoneer and prioritize specific claim classes, with incremental distributions ranging from 6% to 40%. Notably, Convenience Claims (Class 7) will be paid at 120% of their face value. The third distribution includes a 6% payout for Dotcom customer claims, 40% for U.S. customer entitlement claims, and 24% for general unsecured claims and crypto asset loan claims.
Since the 2022 collapse, over $6 billion has been returned to creditors through the restructuring process. This process is supported by legal and financial advisors, including Sullivan & Cromwell LLP and Alvarez & Marsal North America, LLC.
To qualify for the payout, creditors must fulfill pre-distribution requirements, including Know Your Customer (KYC) verification and submission of tax forms via the FTX Customer Portal. The FTX Recovery Trust has cautioned creditors about ongoing phishing scams during the disbursement process.
The bankruptcy proceedings have faced significant legal and operational challenges since FTX's implosion, which triggered a global crypto market downturn. Founder Sam Bankman-Fried is currently serving a 25-year prison sentence following his conviction on fraud and conspiracy charges.
The funds for this distribution come from recovered assets, including cash reserves, clawbacks, and sales of investments such as Anthropic, Robinhood, SOL, and SUI tokens. Unsecured lenders have already received 85% of their claims, with full recovery projected under the bankruptcy plan.
However, $470 million in claims from restricted jurisdictions, including China, Russia, and Ukraine, are currently ineligible for distribution. Transferred claims will be distributed to the transferee holder only if the claim is finalized on the official register. The FTX Recovery Trust has emphasized that opting for a distribution service provider relinquishes the right to direct cash payments from FTX.
