FTX Recovery Trust said Wednesday it will distribute about $2.2 billion to creditors on March 31 as part of its bankruptcy recovery process, with additional payments to preferred stock holders expected later this year.
The payment marks the fourth distribution under FTX’s Chapter 11 reorganization plan and will go to “practical” and “non-practical” class creditors who have completed the required integration steps, the trust’s release said. Funds should arrive within 1-3 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 on September 30, when the trust announced the release of $1.6 billion, the third major payment since the crypto exchange collapsed more than three years ago.
Previous rounds have totaled more than $6 billion in a process to recover user assets of the once-major cryptocurrency exchange, which collapsed in November 2022, triggering a crypto bear market. Sam Bankman-Fried, founder and CEO of the exchange, is serving a 25-year sentence after being convicted of seven counts of fraud and conspiracy.
The latest distribution increases recovery rates in several categories of claims, the trust said. The release added that in this fourth distribution, distribution-eligible individuals classified as “Class 5A Dotcom” would receive an additional 18% (bringing the total recovery to 96%), while U.S. customer claims classified as “5B” would achieve a full 100% recovery. Those in classes “6A” and “6B” would also get 100% back, each receiving a 15% increase. “Class 7” will receive a cumulative distribution of 120%, the press release indicates.
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 stock holders, with payments scheduled for May 29. Eligible holders must complete ownership certification, know-your-customer (KYC) verification and tax documents to qualify, the trust said.
FTX began contacting shareholders earlier this year and urged those who have not been contacted to come forward. Other distribution deadlines should be announced, the press release concludes.
