FTX Recovery Trust Plans to Distribute $1.6 Billion by End of Month, Sparking a Surge in FTT's Value
The FTX Recovery Trust has announced a significant event in the recovery process of the failed exchange, with plans for a third distribution to eligible creditors affected by the collapse. The distribution, scheduled to commence on September 30, 2025, will benefit holders of allowed claims categorised under the Plan's Convenience and Non-Convenience Classes.
In a statement, the Trust did not disclose the exact amount to be distributed but confirmed that Allowed Class 5A Dotcom Customer Entitlement Claims will receive an additional 6%, raising their cumulative distribution to 78%. Similarly, Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims are each set to receive a 24% distribution, increasing their cumulative distributions to 85%. A major 120% distribution is also planned for Allowed Class 7 Convenience Claims.
The responsible person coordinating the distribution has not been named, but the third major payout of $1.6 billion to creditors is expected. Eligible creditors must have completed the necessary pre-distribution requirements, and the distribution process is expected to take one to three business days following the distribution date.
The Trust's distribution does not involve any advertisements and is subject to its strict editorial policy focusing on accuracy, relevance, and impartiality. Funds will be distributed through chosen distribution service providers, which include Bitgo, Kraken, or Payoneer.
Over the past week, the price of FTT, the native token of the failed exchange, has surged by 22%, according to CoinGecko. FTT reached a peak of $1.13 on September 18 before experiencing a slight retracement. Over the week, FTT has fluctuated between $0.78 and $1.06. Despite this recent rally, FTT's all-time high of $84.18, achieved in September 2021, remains nearly 99% above its current price levels.
The Trust's distribution is a crucial step in the recovery process of the FTX exchange. While the exact details of the distribution are still being finalised, the announcement provides a glimmer of hope for the affected creditors. As more information becomes available, we will continue to provide updates on this developing story.
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