FTX to distribute over $5 billion to creditors in second planned payout on May 30

FTX is set to begin its second creditor payout starting on May 30, targeting to distribute more than $5 billion to eligible claimants, according to the estate’s Thursday announcement . Payments will be processed through BitGo or Kraken and are expected to arrive within 1 to 3 business days, the entity states. The distribution includes varying payment rates across different claim categories: Dotcom Customer Entitlement Claims will receive 72%, US Customer Entitlement Claims 54%, General Unsecured Claims and Digital Asset Loan Claims 61% each, and Convenience Claims 120%. To receive distributions, creditors must complete several requirements, including logging into the FTX Customer Portal, completing Know Your Customer verification, submitting tax forms, and onboarding with either BitGo or Kraken. Customers who onboard with a Distribution Service Provider will forfeit their right to receive cash distributions directly from FTX, with payments instead going through their chosen provider. The company warned users to remain vigilant against phishing attempts, emphasizing that FTX will never request wallet connections. For transferred claims, distributions will only be made to transferee holders of allowed claims that are properly processed and registered with the Notice and Claims Agent. This is a developing story.