#United States #Bankruptcy #Wilmington #distribution #FTX

FTX Initiates Second Distribution of $5 Billion

FTX Trading Ltd., alongside the FTX Recovery Trust, has begun the second round of fund distributions, reaffirming its commitment to fulfilling claims by its customers. This initiative is part of its Chapter 11 Plan of Reorganization designed to recover and return funds to creditors, including both convenience and non-convenience classes.

On May 30, 2025, FTX announced that customers who have met the pre-distribution criteria can expect to receive their funds through selected distribution service providers, which include Bitgo and Kraken. Recipients should anticipate their distributions within a timeframe of one to three business days. FTX will announce future record and payment dates in due course, ensuring transparency throughout this process.

Distribution Details

According to the guidelines set forth in FTX's reorganization plan, the following distributions will be made to various creditor classes:

• - Allowed Class 5A Dotcom Customer Entitlement Claims: 72% distribution.
• - Allowed Class 5B U.S. Customer Entitlement Claims: 54% distribution.
• - Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims: each receiving a 61% distribution.
• - Allowed Class 7 Convenience Claims: a substantial 120% distribution.

John J. Ray III, the Plan Administrator for the FTX Recovery Trust, expressed optimism over this significant milestone. He stated, "Today's announcement reflects ongoing progress in restoring cash to as many FTX customers and creditors as possible. We have seen commendable success in recent recoveries, but our focus will remain on accumulating further recoverable amounts for our creditors while addressing outstanding claims."

Eligibility Criteria

To take part in the upcoming distributions, customers need to ensure they meet certain requirements before the distribution record date:
1. Log in to the FTX Customer Portal. This portal is crucial for all account-specific actions and updates.
2. Complete KYC (Know Your Customer) verification to confirm identity and ensure compliance with legal standards.
3. Submit required tax forms to facilitate accurate distributions.
4. Onboard with either BitGo or Kraken, the designated distribution service providers. Instructions for onboarding will be made available through the FTX Customer Portal, providing easy access for users.

Phishing Advisory

FTX has issued a stern warning regarding phishing attempts that may impersonate their communications. This includes emails that appear to originate from the company or fraudulent websites masquerading as the FTX Customer Portal. The firm has emphasized that they will never request customers to connect their wallets in any correspondence.

Additional Resources

For more information, including U.S. Bankruptcy Court filings, customers can visit this link for access to pertinent documents regarding the court proceedings. Furthermore, FTX Digital Markets Ltd. will share distribution details for customers opting to have their claims managed separately by them.

In conclusion, FTX’s ongoing efforts reflect a planned and precautionary approach to debt recovery, reinforcing its framework to rebuild customer trust after the turbulence experienced during its initial crises. The company continues to navigate these complexities, focusing on satisfying creditor claims as expeditiously as possible.

For updates, customers are encouraged to regularly check their FTX portals and official communications to stay informed about the process and further developments.