FTX Recovery Trust announced Wednesday that it will distribute approximately $2.2 billion to creditors on March 31 as part of its ongoing bankruptcy recovery process, with additional payments to preferred stock holders expected later this year.
The dividend is the fourth distribution under FTX’s Chapter 11 reorganization plan and will be paid to both “convenience” and “non-convenience” class creditors who have completed the required onboarding steps, the trust said in a statement. Funds are expected to arrive within 1-3 business days via BitGo, Kraken, and Payoneer.
The Trust also clarified that all distributions to designated service providers will be made in US dollars and that designated service providers will provide options for fiat withdrawal or conversion into digital assets.
The previous distribution to creditors was made on September 30, when the trust announced a release of $1.6 billion, the third major payout since the cryptocurrency exchange’s collapse more than three years ago.
Previous rounds have totaled more than $6 billion as part of a process aimed at recovering the assets of users of the once-prominent crypto exchange, which collapsed in November 2022 and sparked a sharp crypto bear market. The exchange’s founder and CEO, Sam Bankman Fried, was convicted of seven counts of fraud and conspiracy and is serving a 25-year prison sentence.
The trust said the latest distribution had increased recovery rates for several claims classes. The statement added that in this fourth distribution, recipients classified as “Class 5A.com” will receive an additional 18% (reaching a recovery rate of 96%), while claims of U.S. customers classified as “5B” will reach a full recovery of 100%. Those in classes “6A” and “6B” will also recover 100% and each will receive an increase of 15%. Meanwhile, “Class 7” will receive a cumulative 120% distribution, the statement said.
FTX said customers who choose to receive funds through designated distribution providers have waived their right to direct cash payments and will need to work with these platforms to access their funds.
The foundation also set a record date of April 30th for the first payment to preferred stockholders, with payments scheduled for May 29th. Eligible holders will need to complete proof of ownership, know-your-customer (KYC) verification and tax documentation to qualify, the trust said.
FTX began reaching out to its stockholders earlier this year, asking anyone it had not been able to contact to come forward. Further distribution schedules will be announced, the statement concluded.
