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FTX to start about $900M fifth distribution for allowed claims on July 31
Creditor onboarding with a distribution provider must be completed by year-end timing tied to July 31, otherwise eligible claim holders may forfeit distribution rights, according to FTX guidance.
FTX will begin an approximately $900 million fifth distribution under its Chapter 11 plan on Friday, July 31, paying holders of allowed Convenience and Non-Convenience claims that met the plan’s June 16 record date and other pre-distribution requirements, according to a fifth-distribution notice reviewed by CryptoSlate.
FTX said eligible creditors should receive funds from BitGo, Kraken or Payoneer within one to three business days from July 31. The process includes separate gates for claim allowance and readiness for payment, including completion of know-your-customer requirements by June 16, submission of valid tax forms, successful provider onboarding, and passing sanctions screening by that date, the outlet reported.
CryptoSlate also notes that claim allowance does not automatically mean payment readiness. Missing any applicable June 16 eligibility or pre-distribution requirement means holders will receive no July 31 payment.
For holders still awaiting successful distribution-provider onboarding, July 31 starts a six-month window, after which they may forfeit the right to receive distributions if onboarding remains incomplete throughout the period. The plan waterfall also sets different fifth-round payments across creditor classes, including incremental 9% for Class 5A Dotcom Customer Entitlement Claims to a 105% cumulative distribution, and 5% for Class 5B U.S. Customer Entitlement Claims to 105% cumulative.
Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims are each slated for a 3% payment, to 103% cumulatively, while Class 7 Convenience Claims are listed at 120% cumulative distribution, CryptoSlate said. FTX added actual class percentages may vary slightly due to rounding.