Beginning May 30, FTX creditors will receive over $5 billion in distributions, marking a key step in the court-approved recovery plan. Creditors will see 54% to 120% payouts based on their holdings during the exchange collapse on November 2022.
What Is the FTX Repayment Round 2?
As stated in the press release, industry leaders BitGo and Kraken will oversee the process, and transfers are expected to initiate within 1 to 3 business days. This marks a major development in the FTX collapse, as it delivers long-promised compensation and reaffirms efforts to restore stakeholder trust in the aftermath of one of crypto’s most high-profile bankruptcies.
Breakdown of FTX Creditor Classes:
The recovery plan is now in motion, setting specific payout rates tied to the creditor class. This structure follows the court-approved framework, aiming for equitable redress with over 90% of claims queued for distribution.
- Class Five Claimants (vendors, Alameda lenders, and counterparties): 54% to 72%
- Retail Unsecured Creditors: ~61%
- Inter-company FTX entities: Full recovery at 120%
Why BitGo, Kraken Were Chosen as FTX Custodians
The FTX’s recovery trust has confirmed BitGo and Kraken as custodians for the upcoming distribution to creditors. Transfers will begin May 30, with most eligible recipients receiving funds within three business days. The process aligned with the exchange’s recovery plans commitment to efficient, transparent, and compliant payouts. BitGo and Kraken were selected for their industry reputation, strong security, and experience managing complex crypto repayments. Their appointment aims to ensure a smooth, reliable process offering reassurance to thousands of users still reeling from the fallout.
FTX Recovery Plan Timeline, What Happens Next?
Following this second round of repayments, FTX estate will continue to process claims through the remainder of 2025. Further distributions may occur depending on recovered assets and litigation outcomes. The successful execution of FTX’s recovery plan is poised to become a benchmark for resolving future crypto failures. The crypto industry has long struggled with trust, but if this process proves transparent and efficient, it may show that accountability is possible. As creditors receive funds, regulatory bodies will likely fast-track the framework to ensure user protection, resultING in a stronger, more stable environment.
While the bankruptcy proceedings are underway, readers please note that the FTT token no longer has any use, and may be liquidated by the estate to pay creditors. Please proceed with caution before investing.
