#United States #Bankruptcy #Wilmington #FTX #Creditors

FTX Recovery Trust to Distribute Significant Funds

In a significant development following its Chapter 11 bankruptcy proceedings, FTX Trading Ltd. and the FTX Recovery Trust announced on September 19, 2025, that they will distribute approximately $1.6 billion to creditors. This third distribution will take place on September 30, 2025, and is a part of FTX's ongoing efforts to settle claims under its reorganization plan.

Details of the Distribution

Under the terms laid out in the Chapter 11 Plan of Reorganization, eligible creditors who have met the necessary pre-distribution requirements can anticipate receiving funds from their chosen distribution service provider. The service providers include Bitgo, Kraken, and Payoneer, with funds expected to be available within 1 to 3 business days following the distribution date.

According to the outlined plan, various classes of claims will receive different distribution percentages:

• - Class 5A Dotcom Customer Entitlement Claims will benefit from a 6% incremental distribution, leading to a cumulative total of 78% to date.
• - Class 5B U.S. Customer Entitlement Claims will see a distribution of 40%, bringing their cumulative total to 95%.
• - Both Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims will receive a 24% distribution, resulting in an 85% cumulative total.
• - Additionally, Class 7 Convenience Claims will have a generous 120% distribution, effective immediately.

All creditors wishing to participate in future distributions must ensure that they complete specific requirements beforehand, which include logging into the FTX Customer Portal, verifying their identity via Know Your Customer (KYC) processes, submitting requisite tax forms, and choosing one of the distribution service providers mentioned above. Concrete instructions on the onboarding process will be provided via the FTX Customer Portal.

Important Considerations for Creditors

It is essential to note that opting for a Distribution Service Provider means that creditors will relinquish their right to receive direct cash distributions from FTX. Instead, they will have their payments directed to the chosen service provider.

As a precaution, FTX advises all parties to remain vigilant for phishing attempts, specifically emails that may impersonate FTX or fraudulent websites mimicking the FTX Customer Portal. The company reassures customers that legitimate requests for wallet connections will never come from them.

More information regarding the claims and distributions, including judicial filings, can be found on FTX's official website and related resources. This transparency aims to foster trust and clarity as FTX moves through its bankruptcy process.

As this situation continues to evolve, it remains crucial for all stakeholders to stay informed through official channels to avoid potential pitfalls.