From Cointelegraph

May 30, 2025 5:43:00 pm:

The FTX Recovery Trust begins a second round of payments to creditors, releasing $5 billion to eligible parties in the Convenience and Non-Convenience Classes. Different types of claims will receive varying distributions, with General Unsecured Claims and Digital Asset Loan Claims getting 61%. Recipients can expect payments within one to two business days.

Crypto investors are closely watching FTX creditor distributions as reimbursements could impact digital asset markets, causing price volatility if liquidity from reimbursements is offloaded or swapped on retail exchanges. The first round of payments totaling $1.2 billion was distributed to recipients with less than $50,000 in claims on Feb. 18.

Controversy surrounds the FTX reimbursements as creditors and customers voice their discontent with the reimbursement plan. Court documents ruled that creditors would be reimbursed based on the date their petition was filed, resulting in only 10%–25% of their crypto holdings’ value being returned. This left many feeling dissatisfied with the outcome.

Sunil Kavuri, a FTX creditor, raised concerns about 163 countries ineligible to receive reimbursements, including residents in Egypt, Iran, Russia, and Pakistan. This exclusion has left many creditors in these countries unable to benefit from the distribution of funds. The situation has raised questions about the fairness of the process and who is ultimately left out of the equation.

Read more at Cointelegraph: FTX Bankruptcy Estate distributes $5 billion