Collapsed crypto exchange FTX Trading Ltd. said it will
begin a new round of creditor payments on March 31, 2026, as part of its
Chapter 11 restructuring process.
Earlier in 2025, the
company began returning funds under the plan, starting with a $7 billion payout
in February. A second distribution of about $5 billion followed in May.
Recoveries were expected to range between 54% and 120%, with payments made
through providers such as BitGo and Kraken.
FTX Starts Fourth Creditor Payout Round
Together with the FTX Recovery Trust, FTX said the fourth
distribution will cover holders of allowed claims in convenience and
non-convenience classes who have completed required steps.
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Eligible creditors are expected to receive funds within one
to three business days from March 31. Payments will be processed through
selected providers, including BitGo, Kraken, and Payoneer.
The payouts follow priorities set out in the court-approved
plan. Certain claim classes will receive incremental or full recoveries in this
round.Dotcom customer entitlement claims will receive an
additional 18%, bringing total recoveries to 96%. U.S. customer entitlement
claims will receive 5%, reaching 100%.
General unsecured and digital asset loan claims will each
receive 15%, also reaching full recovery. Convenience claims will total 120% in
cumulative distributions.
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Preferred Shareholders Scheduled for May Payment
FTX said customers who onboarded with a distribution
provider have “irrevocably elected to forego” direct cash payments.
Distributions are instead sent to the selected provider.
The company said issues related to fund availability should
be directed to the provider. FTX also set a timeline for preferred shareholders. An April
30, 2026 record date has been scheduled for a May 29, 2026 payment.
Creditors must complete several steps to qualify for future
distributions, including logging into the claims portal, completing identity
verification, submitting tax forms, and onboarding with an approved provider.
This article was written by Tareq Sikder at www.financemagnates.com.
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