FTX Bankruptcy Update: Next Distribution Scheduled for May 30

Defunct cryptocurrency exchange FTX is set to make its next distribution on May 30, following the initial repayment that began earlier this week. The FTX estate will continue reimbursing creditors throughout mid-2025, with more payments scheduled to roll out on May 30, as per the firm’s official bankruptcy updates.

Focus on Larger Claims and Single Repayments

This second distribution will focus on larger claims and single repayments exceeding $50,000. Although the exact amount to be released remains unknown, creditors are expected to receive billions in recovered cash and crypto.

Record Date for Next Distribution

On February 18, 2025, FTX announced the anticipated record date for the next distribution will be April 11, 2025 for holders of allowed claims of FTX’s Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims as defined in the Plan.

Sunil Kavara, representing the largest FTX creditor group, highlighted April 11 as another key date. Customers with claims valued at $50,000 or less who have not yet received payments will be settled by this date. Additionally, customers with claims worth more than $50,000 must choose either Kraken or BitGo as a distribution agent by April 11.

Phase One of Bankruptcy Claims Process

This week, FTX began phase one of its court-approved bankruptcy claims process aimed at making creditors whole. The former crypto titan earmarked $1.2 billion for this first tranche, although only $800 million will likely reach creditors.

Creditors of the collapsed cryptocurrency exchange expect around $13 billion in restitution. However, bankruptcy administrators under CEO John J. Ray III intend to keep up to $7 billion in reserve for disputed claims.

Tips for FTX Creditors

Here are some key takeaways for FTX creditors:

  • Check the official FTX bankruptcy updates for the latest information on distributions and claims.
  • Verify your claim status and ensure you have chosen a distribution agent if your claim exceeds $50,000.
  • Be aware of the record date for the next distribution, April 11, 2025.

Stay up-to-date on the latest cryptocurrency news and updates on FTX’s bankruptcy proceedings by visiting Global Crypto News.

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