Key Takeaways:
The FTX Recovery Trust initiated a significant second payout to qualifying creditors on May 30, amounting to $5 billion.
Eligible creditors are expected to receive distributions of up to 72%, with transactions facilitated through Kraken and BitGo. This influx of funds might lead to temporary fluctuations in the cryptocurrency market as the recovered assets become active in circulation.
The FTX Recovery Trust has begun its second tranche of payments to creditors, marking a pivotal point in the reimbursement journey of the failed exchange.
Starting May 30, the Trust commenced the distribution of $5 billion to eligible creditors who had completed the prerequisites for payout, focusing on both Convenience and Non-Convenience Classes.
This development follows an announcement made on May 28 that detailed the allocation strategy for the funds among various types of claims.
FTX Creditors Set to Receive Up to 72% Payout in Latest Round
According to the established plan, Dotcom Customer Entitlement Claims are poised to receive a distribution of 72%, while US Customer Entitlement Claims will be allotted 54%. Convenience Claims will get a full reimbursement of 120%. Meanwhile, General Unsecured Claims and Digital Asset Loan Claims are set to be allocated 61% of their claims.
Payments are being executed through official partners Kraken and BitGo, with recipients anticipated to access their funds within one to two business days.
The reimbursements from FTX have garnered significant attention from cryptocurrency investors, as the substantial liquidity being introduced through these payouts could have repercussions on digital asset markets.
Experts caution that should recipients opt to liquidate or transfer their recovered funds on retail exchanges, this could lead to short-term volatility in prices.
This marks the second notable round of disbursements following FTX’s collapse; the initial wave, which totaled $1.2 billion, took place on February 18 for claimants with approved claims under $50,000.
However, the reimbursement process has been fraught with challenges.
In September 2024, FTX creditor Sunil Kavuri pointed out that claims were evaluated based on prices at the time of the bankruptcy, during a period of severe downturn in the cryptocurrency market, rather than reflecting current market valuations.
Consequently, many creditors are recouping only between 10% to 25% of their original crypto holdings’ true worth.
FTX Creditor Breakdown
FTX to pay $5bn on 30th May – most to large accounts
Claims > $50k start to be paid out
72.5% petition value
Claims >$50k: $10bn
11k claims
Claims >$1m
1.1k claims
Claims: $1m-$10m: Avg. acct size = $3m
Claims: $10m+: Avg size: $29m
Approx. numbers pic.twitter.com/tagHahQjdd
— Sunil (FTX Creditor Champion) (@sunil_trades) May 29, 2025
Kavuri has also expressed concerns regarding global equity, pointing out that creditors from 163 countries, including nations such as Egypt, Iran, Russia, Greenland, and Pakistan, remain ineligible for these payouts.
Sam Bankman-Fried’s Release Date Set for 2044
Sam Bankman-Fried, the founder of FTX, is now scheduled for release from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud associated with the collapse of FTX.
In addition, he has been subject to a hefty fine exceeding $11 billion. Federal records indicate that Bankman-Fried has been transferred from a facility in New York to a different center in Oklahoma after nearly two years of incarceration.
This transfer occurs following reports that Bankman-Fried was placed in solitary confinement earlier this month due to giving an unauthorized interview to Tucker Carlson.
His detention commenced in August 2023 when Judge Lewis Kaplan revoked his bail, citing allegations of witness tampering linked to leaked diary entries from Caroline Ellison, the former CEO of Alameda, who was a critical witness in his case.
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