The FTX Recovery Trust will distribute approximately $2.2 billion to creditors in its fourth payout round, bringing several claim classes to full recovery.
The FTX Recovery Trust has confirmed it will distribute approximately $2.2 billion to creditors on March 31, marking the fourth and largest single payout since the exchange collapsed in November 2022.
The FTX Recovery Trust announced on March 18 that its fourth distribution round will deliver roughly $2.2 billion to holders of allowed claims in both Convenience and Non-Convenience Classes. Funds will be distributed in U.S. dollars through three designated partners: BitGo, Kraken, and Payoneer. Recipients can expect delivery within one to three business days.
This round brings several creditor classes to full or near-full recovery. U.S. customer entitlement claims (Class 5B) will reach 100% recovery. General unsecured and digital asset loan claims (Classes 6A and 6B) will also hit 100% after receiving an additional 15% each. Convenience class holders (Class 7) will reach a cumulative 120% distribution. Dotcom customer claims (Class 5A) receive an additional 18%, lifting their total recovery to 96%.
The distribution brings total FTX creditor payouts to over $8 billion since the exchange's collapse. Reaching 100% recovery for multiple claim classes is a rare outcome in crypto bankruptcy proceedings, where creditors typically recover only a fraction of their holdings.
For the broader market, the $2.2 billion injection represents potential buying pressure. Creditors receiving funds through BitGo and Kraken have the option to convert payouts directly into digital assets. If even a portion of recipients choose to re-enter crypto positions, it could provide a liquidity boost at a time when the market is trading in a cautious range with Bitcoin around $71,000.
The next milestone is April 30, the record date for preferred equity holders, with payments scheduled for May 29. These holders must complete ownership certification, KYC verification, and tax documentation to qualify. The recovery rates suggest the FTX estate may have exceeded expectations in asset liquidation, a process that included selling its substantial Solana holdings and other crypto positions over the past two years.
The FTX Recovery Trust's fourth distribution marks a significant chapter in one of crypto's largest bankruptcy cases. With multiple creditor classes reaching full recovery and over $8 billion returned, the process is approaching its final stages.
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