Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
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Key Takeaways:
- FTX Recovery Trust began a $5B second payout to eligible creditors on May 30.
- Creditors will receive up to 72% payouts, with payments processed via Kraken and BitGo.
- Distributions could trigger short-term crypto market volatility as recovered funds enter circulation.
The FTX Recovery Trust has launched a second wave of payments to creditors, marking a major milestone in the collapsed exchange’s ongoing reimbursement process.
On May 30, the Trust began distributing $5 billion to eligible creditors who completed pre-distribution requirements, targeting both the Convenience and Non-Convenience Classes.
The move follows a May 28 announcement detailing how the funds would be allocated across various claim types.
FTX Creditors Set to Receive Up to 72% Payout in Latest Round
Under the plan, Dotcom Customer Entitlement Claims are set to receive a 72% distribution, while US Customer Entitlement Claims will see a 54% payout.
Convenience Claims will receive a full 120% reimbursement. General Unsecured Claims and Digital Asset Loan Claims are scheduled for a 61% distribution.
Payments are being processed through official distribution partners Kraken and BitGo, with recipients expected to receive funds within one to two business days.
The FTX reimbursements are being closely watched by crypto investors, as large liquidity injections from these payouts could impact digital asset markets.
Analysts warn that if recipients choose to offload or swap their recovered funds on retail exchanges, it could introduce short-term price volatility.
This is the second major disbursement since FTX’s collapse. The first round of payments, totaling $1.2 billion, was distributed on February 18 to claimants with less than $50,000 in approved claims.
The reimbursement process has not been without controversy.
In September 2024, FTX creditor Sunil Kavuri highlighted that claim values were being calculated based on prices at the time of the bankruptcy filing — during the depths of the crypto winter — rather than current market values.
As a result, many creditors are recovering just 10% to 25% of their crypto holdings’ actual value.
Kavuri has also raised concerns about global fairness, noting 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 projected to be released from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud tied to the FTX collapse.
He was also fined over $11 billion. Federal records confirm that Bankman-Fried has been moved from New York to a transfer facility in Oklahoma following nearly two years behind bars.
The move comes after Bankman-Fried was reportedly placed in solitary confinement earlier this month for giving an unauthorized interview to Tucker Carlson.
His incarceration 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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