- $2.2 billion payout scheduled for March 31 under FTX’s Chapter 11 plan
- Funds distributed via BitGo, Kraken, and Payoneer within 1–3 business days
- Several creditor classes reach 100% recovery, while Class 7 hits 120%
- Preferred equity payouts set with April 30 record date and May 29 payment date
The FTX Recovery Trust has confirmed it will distribute approximately $2.2 billion to creditors on March 31 as part of its ongoing bankruptcy recovery process. This marks the fourth major payout under the exchange’s Chapter 11 reorganization plan following its collapse in November 2022.
According to the trust, eligible creditors in both “Convenience” and “Non-Convenience” classes who have completed onboarding requirements will receive their funds within one to three business days. Payments will be processed through designated service providers including BitGo, Kraken, and Payoneer. All distributions are being made in U.S. dollars to these providers, which will then offer recipients options to withdraw fiat or convert funds into digital assets.
Recovery Rates Climb Across Claim Classes
The latest payout significantly improves recovery rates across multiple creditor groups. The trust stated that:
- U.S. customer claims in Class 5B will reach 100% recovery
- Classes 6A and 6B will also achieve 100% recovery, each receiving a 15% increment
- Class 7 claims are set to receive a cumulative 120% recovery
- Class 5A (Dotcom) claims will increase by an additional 18%, bringing total recovery to 96%
These figures represent continued progress in returning funds to users affected by the exchange’s collapse.
Previous Distributions and Total Recovery Efforts
This latest payout follows earlier distributions, including a $1.6 billion release on September 30. Combined, previous rounds have already exceeded $6 billion in repayments to creditors. The recovery process aims to maximize asset returns for customers and stakeholders impacted by the failure of the once-prominent cryptocurrency exchange.
Preferred Equity Holders to Receive Payments
The trust has also outlined the next phase of distributions, targeting preferred equity holders. Key dates include:
- April 30 as the record date
- May 29 as the scheduled payment date
To qualify, eligible holders must complete ownership verification, Know Your Customer (KYC) procedures, and required tax documentation. The trust noted that outreach efforts began earlier this year and encouraged any uncontacted equity holders to come forward.
Background: Collapse and Legal Fallout: FTX filed for bankruptcy in November 2022, triggering a broader downturn in the cryptocurrency market. Its founder and former CEO, Sam Bankman-Fried, was later convicted on multiple counts of fraud and conspiracy and is currently serving a 25-year prison sentence.
Ongoing Process: The FTX Recovery Trust stated that additional distribution timelines will be announced as the process continues. Creditors who opted to receive funds via designated providers must access their payments through those platforms, having waived the right to direct cash distributions. U.S. prosecutors recently urged a judge to reject Sam Bankman-Fried’s request for a new trial, citing strong evidence supporting his conviction.
