FTX begins $1.2B payouts, next distribution set for May 30
The market did not feel the FTX payments
On the first day of initial distribution, more than one-third of Convenience Class creditors with claims up to $50,000 received payments from FTX, in line with the crypto exchange’s reorganization plan.
According to creditor activist Sunil, at least $800 million of the required $1.2 billion was paid out to creditors on February 18. Approximately 162,000 out of 460,000 estimated approved claims were settled. The initial creditors and claims buyers each received around $400 million.
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FTX Trading Ltd. stated that customers should expect to receive their funds through FTX providers, BitGo, and Kraken within 1–3 business days.
“We are pleased to begin initial distributions today and set a timeline for our next payout. FTX appreciates the patience and cooperation of our customers and creditors throughout this complex process. Our work is not done—we intend to continue our recovery efforts and return additional funds across multiple claim classes,” said John J. Ray III, administrator of the FTX Recovery Trust.
FTX also announced the next phase of payments for holders of FTX Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and Convenience Claims that have not yet received a distribution. The payout plan is expected to be approved on April 11, with the next distribution scheduled to begin on May 30.
Were expectations too high?
FTX Recovery Trust reminds customers and creditors to complete Know Your Customer (KYC) verification, submit necessary tax forms, and connect with BitGo or Kraken to receive their payments.
For transferred claims, distributions will only be made to the registered recipient of the approved claim, as reflected in the official claims register maintained by the Claims and Noticing Agent. This will be finalized after the April 11, 2025, cutoff date, following a 21-day objection period.
Meanwhile, hopes that FTX payouts would positively impact the crypto market have yet to materialize. At the time of writing, CoinMarketCap data shows the total crypto market capitalization has dropped 2.39% in 24 hours, while Bitcoin is trading around $93,800, down 1.5% for the day.
As we wrote, on February 17, the FTX Estate announced the date for its next institutional investor auction, where 11.2 million SOL tokens—currently valued at $2.06 billion—will be sold.
