FTX Recovery Trust announced Wednesday that it will distribute approximately $2.2 billion to creditors on March 31 as part of its ongoing bankruptcy recovery process, with additional payments to preferred shareholders scheduled for later this year.
The payment marks the fourth distribution under FTX’s Chapter 11 reorganization plan and will go to “Convenience” and “Non-Convenience” class creditors who have completed the required incorporation steps, according to the trust filing. Funds are expected to 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 into 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 collapse of the crypto exchange more than three years ago.
Previous rounds totaled more than $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 pronounced cryptocurrency 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 raises recovery rates across several classes of claims, the trust said. The release adds that in this fourth distribution, those eligible for distribution classified as “Class 5A Dotcom” would receive an additional 18% (bringing the total recovery to 96%), while claims from US customers classified as “5B” would reach a total recovery of 100%. Those in classes “6A” and “6B” would also regain 100% and each would receive a 15% increase. “Class 7”, meanwhile, would receive a cumulative distribution of 120%, 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 shareholders, 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 communicating with shareholders earlier this year and urged those who have not been contacted to come forward. More distribution schedules are expected to be announced, the statement concluded.
