FTX to Distribute $5 Billion to Creditors in May 2025
FTX Trading Ltd. adn the FTX Recovery Trust have announced a notable milestone. They plan to distribute $5 billion to eligible creditors on May 30, 2025. This is the second phase of the Chapter 11 reorganization plan.
The funds will go to holders of approved claims in both Convenience and Non-Convenience Classes. though,only those who have completed the necessary pre-distribution steps will receive the funds. The announcement came via a press release on May 15, 2025.
Eligible creditors will get their share through Bitgo or Kraken within one to three buisness days starting May 30, 2025. This distribution follows the first phase in February 2025. The record date for this round was set for April 11,2025. The distribution covers Class 5 customer entitlement claims and class 6 general unsecured claims. It also includes holders of convenience claims that were allowed but not yet paid. John J. Ray III,the plan administrator,highlighted the importance of this step. He praised the team’s efforts in recovering assets and resolving claims.
FTX’s collapse in November 2022 led to this complex recovery process.The first distribution phase was in February 2025.
FTX’s collapse in November 2022 was due to fraud by officials, including sam Bankman-Fried. The FTX Token (FTT) price spiked over 13% following the announcement, reaching $1.33.
For more details, visit the FTX official website.
