FTX Recovery Trust Begins $5 Billion Second Round of Creditor Payments

The FTX Recovery Trust has begun the second round of creditor repayments, releasing approximately $5 billion to eligible claimants as part of its ongoing effort to reimburse users affected by the collapse of the FTX cryptocurrency exchange. This latest distribution , which started on May 30, targets claimants in both the Convenience and Non-Convenience Classes who have successfully completed all pre-distribution requirements. According to a May 28 announcement, the payout covers various categories of claims. Dotcom Customer Entitlement Claims will receive a 72% reimbursement, while U.S. Customer Entitlement Claims are set to receive 54%. Those holding Convenience Claims are being paid 120% of their entitled value, reflecting their priority in the distribution process. Meanwhile, General Unsecured Claims and Digital Asset Loan Claims are slated to receive a 61% distribution. Recipients should expect to see the funds in their accounts within one to two business days via the official partners, Kraken and BitGo . Crypto Markets Watch Closely for Liquidity Impact Market analysts and crypto traders are watching the reimbursements closely due to their potential impact on digital asset prices. The release of billions of dollars back into the hands of retail and institutional investors could introduce short-term volatility, particularly if large sums are sold or exchanged for other assets on public platforms. This round of repayments follows the initial February 18 distribution, in which $1.2 billion was sent to creditors with claims under $50,000 . At the time, Bitget Wallet COO Alvin Kan noted that a significant share of those funds might find their way back into crypto markets, either as reinvestment or liquidity provision. Critics Continue to Question Fairness of FTX Payout Structure Despite the substantial funds being returned, the reimbursement process has not been without controversy. A key concern lies in the court ruling that determined payouts would be based on the value of assets at the time of FTX’s bankruptcy petition, rather than their current market prices. FTX creditor and vocal critic Sunil Kavuri highlighted that many creditors only received 10% to 25% of the current value of their crypto holdings due to the low market prices during the petition date. At that time, Bitcoin was trading around $16,000—a fraction of its current value. Kavuri also raised alarm earlier this year over the exclusion of users in 163 countries , including Pakistan, Russia, Iran, and Greenland, who are ineligible to receive reimbursement under the current plan. As the FTX Recovery Trust continues its efforts , the broader crypto community remains divided on whether justice has truly been served. The post FTX Recovery Trust Begins $5 Billion Second Round of Creditor Payments appeared first on TheCoinrise.com .

Source: The Coin Rise