FTX Announces Next Round of Fund Distributions

This marks another step in the ongoing effort to return funds to customers and other claimants following FTX’s 2022 bankruptcy filing.

Creditors who have completed the required pre-distribution steps can expect funds from their selected Distribution Service Provider, including BitGo, Kraken, or Payoneer, within one to three business days.

Distribution Details and Waterfall Priorities

The third distribution follows the priority rules established in FTX’s Chapter 11 Plan. Dotcom customer entitlement claims, classified as Class 5A, will receive an additional six percent distribution, bringing the cumulative total to seventy-eight percent. U.S. customer entitlement claims in Class 5B will see a forty percent payout in this round, totaling 95% of their allowed claims to date. General unsecured claims (Class 6A) and digital asset loan claims (Class 6B) are each scheduled for a twenty-four percent distribution, bringing cumulative payouts to 85%. Convenience claims in Class 7 will receive a full one hundred twenty percent distribution.

Eligible creditors who have opted to use a Distribution Service Provider have chosen to receive payments directly through that platform rather than from FTX itself. This ensures faster and more secure transfers but requires onboarding with the service provider before receiving funds. For example, a U.S.-based FTX customer who completed KYC verification and tax forms and onboarded with Kraken can expect to see their distribution credited directly to their Kraken account.

Preparing for Future Distributions

To participate in future distribution rounds, creditors must complete several steps. They need to log in to the FTX Customer Portal, complete KYC verification, submit any required tax forms, and onboard with one of the approved Distribution Service Providers. For transferred claims, only the registered transferee will be eligible for payouts, provided the claim has been officially recorded and the 21-day notice period has passed without objection.

This structured approach reflects a broader trend in the crypto industry toward more transparent and regulated recovery processes following high-profile bankruptcies. Investors and creditors now have clearer guidance and secure avenues to reclaim lost funds, improving confidence in digital asset markets.

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