FTX will distribute approximately $2.2 billion to creditors on March 31, with Convenience Class creditors receiving 120% of their claims while general unsecured creditors hit 100% recovery.

The Fourth Distribution Breakdown

Class 5A Dotcom Customer Entitlement Claims will receive an incremental 18% distribution, bringing cumulative recovery to 96%. 

Class 5B U.S. Customer Entitlement Claims will receive 5%, reaching 100% cumulative recovery.

Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims will each receive 15% distributions, hitting 100% cumulative recovery. 

Class 7 Convenience Claims will receive a cumulative 120% distribution, becoming the first creditor class to recover more than their original claim amount.

Eligible creditors should expect to receive funds from their selected distribution service provider—BitGo, Kraken, or Payoneer—within one to three business days from March 31.

Why 120% Recovery Is Possible

The recovery exceeds 100% because FTX’s bankruptcy estate successfully sold assets, clawed back funds, and benefited from crypto price appreciation during the bankruptcy process. 

The estate recovered more value than the dollar amount owed to creditors at the time of filing.

Convenience Class creditors receive the highest recovery because their claims are small and the bankruptcy code allows estates to pay them premium recoveries to simplify administration and avoid costly litigation over small amounts.

The Preferred Equity Payment Plan

FTX set an April 30 record date for the first payment to preferred equity holders on May 29. Payments will be made from the Preferred Shareholder Remission Fund Trust.

To receive payments, preferred equity holders must provide an executed ownership certification, complete KYC verification, and submit required tax forms by the April 30 record date. Outreach to preferred equity holders began in January.

How To Get Paid

Creditors must complete four steps before their diAstribution record date to receive payment

First, log in to the FTX Customer Portal at claims.ftx.com. Second, complete required Know Your Customer verification.

Third, submit required tax forms. Fourth, onboard with either BitGo, Kraken, or Payoneer as the distribution service provider. 

By onboarding with a distribution service provider, creditors irrevocably elect to forego cash distributions and direct FTX to pay the provider directly.

FTX will distribute funds for transferred claims only to the transferee holder listed on the official register as of future record dates, provided the 21-day notice period lapses without objection.

The Phishing Warning

FTX warned creditors to remain aware of phishing emails that may look like they are from FTX and scam sites that appear to mimic the FTX Customer Portal. 

The company will never ask users to connect their wallets.

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