• FTX Recovery Trust announces second distribution of over $5 billion to creditors on May 30, 2025.
  • Payout percentages vary by claim class, with Convenience Claims receiving 120% of their value.
  • The distribution includes claims above $50,000 for the first time, expanding creditor eligibility.

A Major Step in FTX's Bankruptcy Resolution

The FTX Recovery Trust has confirmed it will distribute more than $5 billion to creditors on May 30, marking a critical phase in the collapsed cryptocurrency exchange's bankruptcy proceedings. This second distribution follows an initial payout in February and significantly broadens the scope of eligible claims.

Creditors who completed pre-distribution requirements—including Know Your Customer verification and onboarding with BitGo or Kraken—will receive funds within 1-3 business days after the distribution date. The record date for eligibility was April 11, 2025, locking in verified claims for this round.

Structured Payouts Across Claim Classes

The distribution follows a waterfall structure, with varying percentages paid to different creditor classes. Convenience Claims holders will receive 120% of their claim value, while Dotcom Customer Entitlement Claims get 72%. U.S. Customer Entitlement Claims are set for 54%, and General Unsecured Claims along with Digital Asset Loan Claims will each receive 61%.

Unlike the first distribution, which capped claims at $50,000, this round includes larger claims, covering a wider pool of FTX's creditors. The expanded eligibility encompasses Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims, addressing a broader spectrum of the exchange's obligations.

Progress Toward Full Repayment

FTX's recovery plan aims to reimburse 98% of creditors at least 118% of their claim value in cash. Previous estimates suggested total distributions could reach between $14.5 billion and $16.3 billion, positioning this $5 billion payout as a substantial milestone.

However, some creditors using FTX Bahamas as their distribution channel have yet to receive updates on their refund timelines. The Trust has directed all creditors to monitor the FTX Claims portal for further announcements on subsequent distributions.

With the May 30 payout, FTX moves closer to resolving one of the most high-profile collapses in cryptocurrency history, though challenges remain in finalizing repayments to all affected parties.