Massive Payouts Begin for FTX Creditors

The FTX Recovery Trust commenced its second major distribution round on May 30, releasing over $5 billion to qualified creditors. This follows February's initial $1.2 billion payout targeting smaller claimants. The current phase covers both Convenience and Non-Convenience Class creditors who fulfilled pre-distribution requirements, with funds expected to reach recipients within 48 hours through official partners Kraken and Bitgo.

Unequal Recovery Rates Spark Controversy

【72%】 of Dotcom Customer claims are being honored, while US Customers receive 【54%】 reimbursement. Surprisingly, Convenience Claims obtain 【120%】 repayment—a decision that's drawn criticism from other creditor groups. General Unsecured and Digital Asset Loan claimants will recover 【61%】 of their holdings. These percentages reflect November 2022 petition-date valuations, when Bitcoin traded near $16,000, rather than current market prices.

Geographic Restrictions Leave Thousands Empty-Handed

——Residents across 163 jurisdictions face total exclusion—— including major markets like Russia, Pakistan, and Egypt. Court documents reveal this stems from compliance challenges with international sanctions and money transmission laws. FTX creditor advocate Sunil Kavuri has repeatedly highlighted how the reimbursement framework disadvantages crypto holders compared to fiat claimants.

Market Impact Under Microscope

Analysts warn the massive liquidity injection could trigger volatility as recipients may quickly convert crypto holdings to stablecoins or cash. Bitget Wallet COO Alvin Kan notes a "significant portion" might re-enter crypto markets, creating unpredictable price swings. The situation echoes February's distribution, which coincided with a 【7%】 Bitcoin price fluctuation within 72 hours.

Legal Complexities Continue

The repayment process remains entangled in bankruptcy court rulings that freeze asset values at 2022 levels. This approach has effectively reduced crypto creditors' recovery to 【10-25%】 of current portfolio values—a point of contention in ongoing litigation. Meanwhile, Binance seeks dismissal of a related $1.76 billion lawsuit, blaming FTX's collapse solely on former leadership.

As the crypto industry watches these developments, the FTX saga continues rewriting bankruptcy precedents for digital asset cases worldwide. The next distribution phase timing remains uncertain, pending court approvals and operational reviews.