The exchange, which collapsed in 2022, will distribute $5 billion to creditors starting May 30.
On May 30, FTX will begin the second phase of repayments, delivering over $5 billion to eligible creditors. According to the official announcement, payments will be processed through two main providers: BitGo and Kraken.
Creditors can expect to receive their funds within a relatively short period — from one to three business days after the distribution begins. This second round focuses on creditors with claims over $50,000, following the first repayment phase launched in February for smaller claims.
John Ray III, current CEO of FTX, has allocated about $11.4 billion for customer repayments. Creditors will receive amounts calculated based on the value of crypto assets at the time of the bankruptcy filing (November 2022).
Variable repayment percentages
The distribution plan foresees differentiated payout rates based on the various categories of claims:
- Dotcom customer claims will receive 72%;
- U.S. customer claims will get 54%;
- General unsecured claims and claims from digital asset loans will each receive 61%;
- Convenience class claims will see a 120% repayment.
“These initial distributions to non-convenience classes mark a significant milestone for FTX,” stated the exchange’s CEO.
Requirements to claim repayments
To receive payments, creditors must complete several mandatory steps:
- Log into the FTX Customer Portal;
- Complete KYC (Know Your Customer) verification;
- Submit the required tax forms;
- Complete onboarding with BitGo or Kraken.
