FTX Recovery Trust has announced that approximately $2.2 billion in new payments will soon be distributed to creditors as part of the company’s ongoing bankruptcy proceedings. The distribution, slated for March 31, will mark the fourth major payout under FTX’s court-approved restructuring plan and reflects a significant step in returning assets to those harmed by the platform’s 2022 collapse.
Payouts to Begin at End of March
According to the announcement, the upcoming payments will be directed to creditors classified as “Convenience” and “Non-Convenience,” provided they complete the required registration and verification steps. Recipients can expect their funds to arrive in their accounts within one to three business days, using payment services BitGo, Kraken, or Payoneer. All payments will be processed in U.S. dollars through these designated third-party providers.
These providers will give users the option to withdraw funds as cash or convert them into digital assets. The third round of distributions last September disbursed $1.6 billion to creditors, underscoring FTX’s ongoing efforts to stabilize its financial legacy.
Total Repayments Surpass $6 Billion
Since FTX’s dramatic collapse in November 2022, more than $6 billion has been returned to former users and creditors. The initiative follows the conviction of FTX founder Sam Bankman-Fried, who is currently serving a 25-year sentence for fraud and conspiracy—underscoring the magnitude of losses incurred in the scandal.
This most recent allocation also improves the recovery rates for certain creditor groups. For example, claimants in the “Class 5A Dotcom” category will receive an additional 18% payout, raising their total recovery to 96%. Meanwhile, “5B” class creditors—primarily U.S.-based claimants—are set to attain a full 100% reimbursement on their claims.
Some Groups to Receive Full Repayment
Similarly, creditors in the “6A” and “6B” classes will see their recovery rates boosted by 15%, achieving a complete 100% repayment. The “Class 7” creditors, on the other hand, are poised to receive a total return of 120% of their approved claims, marking a notably favorable outcome for this group.
The company reminded users who choose to receive payouts through distribution providers that they waive the right to request direct cash payments and must proceed with transactions on the specified platforms.
For preferred shareholders, the Trust has set April 30 as the deadline to finalize registration for the first phase of repayments. Payouts to this group are scheduled to begin on May 29, contingent upon claimants verifying ownership, completing identity checks, and submitting tax documents.
FTX stated that it has been in communication with shareholders since the beginning of the year and urged those who have not yet received information to submit their applications. The Trust indicated that further payment schedules will be announced in the coming period as the bankruptcy process unfolds.
