Collapsed crypto exchange FTX Trading Ltd, once helmed by Sam Bankman-Fried, will start to pay more than $5 billion to its creditors on May 30, 2025. This round of disbursements is part of the company’s Chapter 11 reorganization plan to give back money lost when the company collapsed last year.
Within one to three business days of the distribution date, the payments will be transferred through Kraken and BitGo. Only partners with verified claims will be allowed to take disbursements.
Varying Recovery Rates Set by Claim Classes
The amount paid from a claim is set by class, and the recovery rate is not the same for every type of claim. Customers from FTX.com, assigned to Class 5A, will get 72% of the eligible funds they submitted. People using Class 5B in the U.S. will have a 54% recovery.
Similarly, every coin consumers own in 6A and 6B will enjoy a 61% recovery. Class 7 Convenience Claims are receiving more money, as they have been set to pay 120%. This decision makes it easier for more minor claimants to file their claims.
Administrator John J. Ray III stated that the payout is significant progress in paying out victims. He mentioned that the operation includes many experts from Sullivan & Cromwell LLP and Alvarez & Marsal North America, LLC.
Distribution Requires Mandatory Verification and Fraud Precautions
To receive their money, claimants should submit tax forms and complete the KYC process on the FTX claims portal. They must select Kraken or BitGo when setting up their payment deliveries.
After a 21-day waiting period during which no one raises any dispute, the registration of the transferred claims must be complete. Claimants could end up without a payout due to not meeting these conditions.
FTX has advised users to remain vigilant against phishing. People should avoid disclosing information from their sensitive accounts or signing in with their wallets via unapproved systems. All correct forms of interaction should be done on the FTX claims portal to prevent identity or asset theft.
Conclusion
The distribution process is a vital step in concluding the bankruptcy of FTX. This showcases a meaningful milestone in restoring funds to those affected by one of the most significant failures in the crypto sector.
