FTX Recovery Trust Initiates $5 Billion Second Distribution to Creditors

Key Takeaways:

• FTX Recovery Trust initiated a $5 billion second payout to qualifying creditors on May 30.
• Creditors are set to receive payouts of up to 72%, with transactions being handled through Kraken and BitGo.
• These distributions may lead to short-term volatility in the crypto market as the recovered funds are reintroduced into circulation.

The FTX Recovery Trust has commenced a second round of payments to creditors, representing a significant step in the ongoing reimbursement efforts of the collapsed exchange.

On May 30, the Trust started distributing $5 billion to eligible creditors who met pre-distribution criteria, focusing on both the Convenience and Non-Convenience Classes.

This action follows a May 28 announcement outlining the allocation of funds across different claim categories.

FTX Creditors Set to Receive Up to 72% Payout in Latest Round

According to the plan, Dotcom Customer Entitlement Claims are expected to receive a 72% distribution, while US Customer Entitlement Claims will obtain a 54% payout.

Convenience Claims will be fully reimbursed at 120%. General Unsecured Claims and Digital Asset Loan Claims are slated for a 61% distribution.

Payments are being facilitated through official distribution partners Kraken and BitGo, with recipients anticipated to receive their funds within one to two business days.

The FTX reimbursements are under close observation by crypto investors, as significant liquidity influx from these payouts could influence digital asset markets.

Analysts caution that if recipients decide to sell or exchange their recovered funds on retail platforms, it may lead to short-term price fluctuations.

This marks the second substantial disbursement since FTX’s downfall. The initial round of payments, amounting to $1.2 billion, was distributed on February 18 to claimants with approved claims under $50,000.

The reimbursement process has encountered its share of controversies.

In September 2024, FTX creditor Sunil Kavuri pointed out that claim values were being determined based on prices at the time of the bankruptcy filing — during a severe downturn in the crypto market — instead of current market valuations.

Consequently, many creditors are recovering only 10% to 25% of the actual value of their crypto holdings.

FTX Creditor Breakdown
FTX to pay $5bn on 30th May – most to large accounts
Claims > $50k start to be paid out
72.5% petition value
Claims >$50k: $10bn
11k claims
Claims >$1m
1.1k claims
Claims: $1m-$10m: Avg. acct size = $3m
Claims: $10m+: Avg size: $29m
Approx. numbers pic.twitter.com/tagHahQjdd

— Sunil (FTX Creditor Champion) (@sunil_trades) May 29, 2025

Kavuri has also expressed concerns regarding global equity, highlighting that creditors in 163 countries, including Egypt, Iran, Russia, Greenland, and Pakistan, remain ineligible for payouts.

Sam Bankman-Fried’s Release Date Set for 2044

FTX founder Sam Bankman-Fried is now expected to be released from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud related to the FTX collapse.

He was also ordered to pay a fine exceeding $11 billion. Federal records indicate that Bankman-Fried has been transferred from New York to a facility in Oklahoma after nearly two years of incarceration.

This transfer follows reports that Bankman-Fried was placed in solitary confinement earlier this month for conducting an unauthorized interview with Tucker Carlson.

His imprisonment began in August 2023, after Judge Lewis Kaplan revoked his bail due to allegations of witness tampering involving leaked diary entries from former Alameda CEO Caroline Ellison, who was a key witness in the case.

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