The bankrupt exchange’s comeback enters a new phase as non-convenience class creditors get their long-awaited slice. Did you complete your KYC yet?
Key Highlights:
- FTX will distribute over $5 billion to eligible creditors starting May 30, with payouts ranging from 54% to 120% depending on claim class.
- Distributions will be made through BitGo or Kraken—only to users who completed onboarding, KYC, and tax requirements.
Yello ParadiseSquad, it’s finally happening. After months of spreadsheets, legal filings, and the occasional Sam Bankman-Fried meme, FTX will begin its second distribution round on May 30, returning over $5 billion to creditors under its Chapter 11 Plan of Reorganization.
FTX’s bankruptcy administrator John J. Ray III called it a major milestone—especially since it includes the first payouts for non-convenience classes, marking a turning point in the long road from scandal to restitution.
Users who met the pre-distribution requirements should see funds within 1 to 3 business days from May 30, depending on whether they selected BitGo or Kraken as their distribution provider.
Who’s Getting What in the Second Payout?
The distribution waterfall is laid out by class, and here’s how it looks:
Dotcom Customer Entitlement Claims (Class 5A) will receive 72%.
U.S. Customer Entitlement Claims (Class 5B) are set to receive 54%.
General Unsecured Claims and Digital Asset Loan Claims (Classes 6A & 6B) each receive 61%.
And Convenience Claims (Class 7) are receiving a stunning 120%—yes, that’s full return plus surplus for the small fry.
The catch? You only qualify if your paperwork, tax forms, and KYC were all submitted and cleared through FTX’s customer portal. If you missed that window, you’ll have to wait for the next round, with future record and payment dates yet to be announced.
One More Thing: You’re Locked Into Your Payout Route
If you selected BitGo or Kraken as your payout provider, you’ve irrevocably agreed to receive your funds through them. That means no going back to ask for cash distributions from FTX directly. And if your funds don’t show up on time? Don’t ping FTX, contact your distribution provider directly.
Also: beware phishing attempts. FTX warns users not to trust any message asking them to connect a wallet or verify assets via shady links.
The Big Picture: Creditor Recovery or Redemption Arc?
With over $5 billion moving and some creditors getting more than they lost, this might be the most successful large-scale crypto bankruptcy resolution to date. It doesn’t erase the scandal—but it does show what’s possible when smart recovery meets cold, methodical asset tracing.
We’ll break down claim trading opportunities, secondary market risk premiums, and which protocols could benefit from this liquidity wave in our next YouTube stream, with detailed analytics sent to ParadiseFamilyVIP members.
Join MCP News Private for just $3/month to stay on top of bankruptcy payouts, protocol settlements, and fund flows that can move markets in silence—until they hit your portfolio.
Because in crypto, sometimes the real pumps come from the past finally paying up.
