FTX has started its second distribution of over $5 billion to holders of allowed claims under its Chapter 11 Plan of Reorganization.
This payment is made to claimants in both Convenience and Non-Convenience Classes who have met the required pre-distribution steps. Customers and creditors can expect to receive these funds within one to three business days from May 30.
FTX Begins Second $5 Billion Distribution
The FTX payout follows a specific priority order, as outlined in FTX’s Plan of Reorganization. Allowed Class 5A Dotcom Customer Entitlement Claims are receiving a 72% distribution of their claims. Meanwhile, Allowed Class 5B U.S. Customer Entitlement Claims are allocated 54%.
For Allowed Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims, the FTX distribution rate stands at 61%. Notably, Allowed Class 7 Convenience Claims are receiving a 120% payout. This varied distribution reflects the hierarchy and terms set out in the court-approved plan.
The distribution will be made through FTX’s designated service providers, Kraken and BitGo. The company has urged recipients to complete necessary verification processes to ensure timely receipt of payments. The use of stablecoins, including USDC and USDT, is intended to speed up payments and reduce delays caused by banking processes.
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Kelvin Munene Murithi
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