FTX from March 31 to distribute 2.2 billion dollars to creditors

FTX, the now-defunct crypto exchange, will begin its fourth installment of creditor payments on March 31, according to an announcement Wednesday by the FTX Recovery Trust, which handles recovered assets and payments to creditors.

Distribution partners including BitGo, Kraken and Payoneer process payments, which claim holders should receive within one to three business days.

In addition, the company has set a deadline of April 30 for eligible equity holders to qualify for the first payment of May 29.

The distribution program brings many creditor units closer to full recovery.

Under the proposed payment plan, American consumer rights claims will receive a 5% distribution on completion of 100% of their aggregate payment. International clients with dotcom client claims receive an 18% increase, bringing their cumulative recovery to 96%.

Gross unsecured claims and digital asset loan claims receive 15% distributions each, as well as 100% aggregate payouts. Comfort class applicants will get a cumulative 120% spread.

Lenders must complete onboarding, identity verification and tax requirements to receive future payments, while preferred equity holders must prove their ownership and meet all requirements by the record date to qualify.

Under the court-approved reorganization plan, FTX has returned billions of dollars to creditors by making payments based on the dollar value of assets at the time of the November 2022 bankruptcy filing.

The distribution process started in February 2025 with the first round of around $1.2 billion for Convenience Class claimants with less than $50,000 in claims, covering 100% of their claims plus 9% interest.

The second round in May 2025 will be the first big payout for large and institutional claims, with payouts ranging from 54% to 72%. The third round began last September and allocated around $1.6 billion to creditors.

The issuance of $2.2 billion is expected to provide significant cash flow to lenders, which could affect trading activity and asset prices in the crypto market. Those who receive payments can use part of the money to buy digital assets, increasing demand for major tokens.