#Cryptocurrency #United States #Wilmington #FTX Recovery Trust #Chapter 11 Plan

FTX Recovery Trust Plans Significant Distribution

On March 31, 2026, FTX Trading Ltd. and the FTX Recovery Trust are set to distribute approximately $2.2 billion to creditors, in line with FTX's Chapter 11 Plan of Reorganization. This crucial move signifies a critical step in the company’s efforts to recover from previous financial turmoil and ensure its creditors begin to receive compensation for their claims.

FTX's recovery strategy is divided into several classes of claims, each of which will receive a specific percentage of their entitled distribution. This upcoming distribution will target holders of allowed claims that fall under both the Convenience and Non-Convenience Classes that have successfully met all pre-distribution requirements. Eligible creditors are expected to receive their funds through one of the pre-selected distribution service providers, which include Bitgo, Kraken, or Payoneer, and should anticipate receiving the funds within 1 to 3 business days following the distribution date.

Classes of Distribution

In this fourth distribution, the following allocations will occur, as per the structured priorities outlined in the Chapter 11 Plan:

• - Allowed Class 5A Dotcom Customer Entitlement Claims: Recipients will receive an 18% distribution, raising their cumulative total to 96% thus far.
• - Allowed Class 5B U.S. Customer Entitlement Claims: Such claims are set to receive a 5% distribution, achieving a full 100% cumulative distribution.
• - Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims: Both categories will benefit from a 15% distribution, marking a complete 100% distribution to date.
• - Allowed Class 7 Convenience Claims: This group will significantly benefit, now standing at a cumulative distribution of 120%.

As a key reminder, customers onboarding with a distribution provider have agreed to forgo receiving immediate cash distributions, with the funds routed directly to their chosen provider. Customers are encouraged to reach out to their respective distribution service provider for assistance with any queries about their accounts.

Requirements for Future Distributions

To maintain eligibility for upcoming distributions, customers and creditors are required to fulfill specific steps prior to the established record date. This includes logging into the FTX Customer Portal, completing Know Your Customer (KYC) verifications, submitting necessary tax forms, and onboarding with either BitGo, Kraken, or Payoneer. It’s also important to note that distributions related to transferred claims will only be extended to those listed as holders of record as of the record date, provided all necessary conditions are met.

Preferred Equity Holders and Payments

In tandem with the distributions to creditors, FTX outlined future payments designated for holders of preferred equity interests. An initial payment scheduled for May 29, 2026, is intended to cater to those previously identified as holders of preferred equity. To ensure they are credited, these individuals must provide an ownership certification, complete KYC verifications, and submit any essential tax documentation by the established record date of April 30, 2026.

Furthermore, FTX cautions against potential phishing scams impersonating their operations and reminds stakeholders to be vigilant against fraudulent communications mimicking FTX’s official channels.

Conclusion

As FTX navigates through its Chapter 11 restructuring, the plan to distribute nearly $2.2 billion marks a critical juncture for creditors impacted by the company's previous operational difficulties. Stakeholders are urged to stay informed via the company’s official updates and adhere strictly to the outlined requirements to ensure smooth transactions throughout this recovery process.