FTX Recovery Trust announced Wednesday it will distribute roughly $2.2 billion to creditors on March 31 as part of its ongoing bankruptcy recovery process, with additional payments to preferred equity holders scheduled 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 required onboarding steps, the trust’s statement says. Funds are expected to arrive within 1 to 3 business days via BitGo, Kraken, or Payoneer.
The trust also clarified all distributions are made in U.S. dollars to designated service providers, which then offer options for fiat withdrawal or conversion into digital assets.
The previous distribution to creditors took place from Sept. 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.
Earlier rounds totalled 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 pushes recovery rates higher across several claim classes, the trust said. The statement added that in this fourth distribution, those eligible for distribution classed as “Class 5A Dotcom” would receive an additional 18% (bringing total recovery to 96%), while U.S. customer claims classed as “5B” would reach full recovery at 100%. Those in classes “6A” and “6B” would also recover 100% recovery, each receiving a 15% increment. “Class 7,” meanwhile, would receive a cumulative 120% distribution, the statement said.
FTX said customers who opted 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 equity holders, 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 outreach to equity holders earlier this year and urged those who have not been contacted to come forward. Further distribution timelines are expected to be announced, the statement concluded.
