FTX Recovery Trust announced Wednesday that it will distribute about $2.2 billion to creditors on March 31 as part of its ongoing bankruptcy recovery process, with additional payments to preferred stockholders planned later this year.
The payout marks the fourth distribution under FTX’s Chapter 11 reorganization plan and will go to creditors in both “Convenience” and “Non-Convenience” classes who have completed the necessary onboarding steps, the trust’s statement said. The funds are expected to arrive within 1 to 3 business days via BitGo, Kraken or Payoneer.
The trust also clarified that all distributions are made in US dollars to designated service providers who then offer options for fiat withdrawal or conversion to digital assets.
The previous distribution to creditors took place from September 30, when the trust announced the release of $1.6 billion, the third major payout since the collapse of the crypto exchange more than three years ago.
Previous rounds totaled over $6 billion as part of a process aimed at recovering assets for users of the once-prominent cryptocurrency exchange, which collapsed in November 2022, triggering a steep crypto bear market. Sam Bankman-Fried, the founder and CEO of the exchange, is serving a 25-year sentence after being found guilty of seven counts of fraud and conspiracy.
The latest distribution is pushing recovery rates higher across multiple claims classes, the trust said. The statement added that in this fourth distribution, those eligible for distribution classified as “Class 5A Dotcom” will receive an additional 18% (bringing the total recovery to 96%), while US customer claims classified as “5B” will reach full recovery at 100%. Those in classes “6A” and “6B” would also regain 100% restitution, each receiving a 15% increase. “Class 7,” meanwhile, would receive a cumulative distribution of 120%, the statement said.
FTX said customers who chose to receive funds through a designated distribution provider have waived their right to direct cash payments and must work with those platforms to access their funds.
The estate also set April 30 as the record date for its first payments to preferred stockholders, with payments scheduled for May 29. Eligible holders must complete ownership certification, know-your-customer (KYC) verification and tax documentation to qualify, the trust said.
FTX began approaching shareholders earlier this year and encouraged those who have not been contacted to come forward. Additional distribution timelines are expected to be announced, the statement concluded.
