FTX Recovery Trust announced that its second wave of creditor distributions will begin on May 30, sending minor shockwaves through cryptocurrency markets.
Following the announcement, Bitcoin dipped 0.5% toward $103,000 while Solana experienced a more significant 4% decline. As it is, most top altcoins are stuck in holding patterns while some are retreating from sharp rallies, suggesting that bulls are holding out for next catalysts or ready to book profits further.
Crypto Distribution Details
The defunct cryptocurrency exchange will distribute funds to eligible creditors who have completed pre-distribution requirements. According to John J. Ray III, Plan Administrator of the FTX Recovery Trust, this marks “an important milestone for FTX” in what he describes as “an unprecedented distribution process.”
The distribution percentages vary by claim class:
- Dotcom Customer Entitlement Claims: 72% recovery
- U.S. Customer Entitlement Claims: 54% recovery
- General Unsecured and Digital Asset Loan Claims: 61% recovery
- Convenience Claims (under $50,000): remarkable 120% recovery
Eligible creditors will receive their funds via either BitGo or Kraken within 1-3 business days of the May 30 distribution date. By selecting these distribution service providers, customers have waived rights to direct cash payments from FTX.
Potential Market Impact
The market reaction appears tied to concerns about possible sell pressure as creditors receive substantial cryptocurrency distributions. This echoes a similar price drop when FTX unlocked 11.2 million SOL tokens in March for initial distributions.
To qualify for this and future distribution rounds, creditors must:
- Log into the FTX Customer Portal at claims.ftx.com
- Complete KYC verification
- Submit required tax forms
- Onboard with either BitGo or Kraken
The trust also issued a phishing advisory, warning creditors to be vigilant against scam emails and fake portals, emphasizing that “FTX will never ask you to connect your wallets.”
This second distribution follows the initial February payout to smaller Convenience Class creditors with claims under $50,000. The FTX Recovery Trust continues working toward “recovering more for creditors and resolving outstanding claims” according to Ray, with future distribution dates to be announced.
This distribution comes amid significant shifts in the crypto regulatory landscape. The SEC is recently clarifying stablecoin guidelines while several major financial institutions have launched spot Bitcoin ETFs, bringing newfound legitimacy to digital assets.
Meanwhile, institutional adoption continues to accelerate, with several Fortune 500 companies adding Bitcoin to their balance sheets in Q1 2025 and states establishing their own strategic crypto reserves. These developments have helped the sector recover credibility following the FTX debacle, though the upcoming distribution serves as a reminder of the need for comprehensive oversight in an industry still working to rebuild trust.
The FTX collapse in late 2022 ranks among the largest failures in cryptocurrency history. Today’s announcement represents significant progress in the bankruptcy proceedings, with most creditors now poised to recover over half of their original claims—a notably high recovery rate for a major exchange collapse.
