FTX Bankruptcy Restructuring Second Round Distribution Analysis: Creditor Rights and Market Impact

Background and Core Developments of FTX Bankruptcy Restructuring

On May 30, 2025, FTX Trading Ltd. and the FTX Recovery Trust will launch the second round of creditor distributions, marking a key milestone following the first round of repayments in March 2025. This round covers creditors who have completed the pre-distribution requirements in the Convenience and Non-Convenience classes, with compensation ratios as follows:

• Class 5A Dotcom Customer Claims: 72%

• Class 5B U.S. Customer Claims: 54%

• Class 6A General Unsecured Claims & 6B Digital Asset Loan Claims: 61% each

• Class 7 Convenience Claims: 120%

The total amount to be distributed is approximately $5 billion, aiming to gradually realize creditor rights in fiat currency. Since filing for bankruptcy in November 2022, FTX has recovered between $14.5 billion and $16.3 billion in assets—far exceeding initial debt estimates.

This market insights article examines the details of FTX’s second distribution, associated risks, and the broader implications for the crypto industry.

Distribution Details and Creditor Class Differences

According to the reorganization plan approved by the bankruptcy court, FTX’s repayment strategy differentiates based on creditor type:

• Convenience Class Creditors: Mostly small claims (under $50,000). These received 119% repayment in the first round, with Class 7 claims now raised to 120%, showing priority compensation for retail investors.
• Non-Convenience Creditors: Including institutional investors and large clients, these must meet stricter KYC verification and asset reconciliation requirements. For example, Dotcom customers must receive funds via BitGo or Kraken and submit tax documentation.

It is worth noting that claimants who failed to complete KYC by March 3, 2025, lost their eligibility—affecting over $2.5 billion in claims, highlighting the importance of compliance.

Potential Risks and Market Impact

Despite positive signals from the distribution plan, FTX’s bankruptcy liquidation still faces multiple challenges:

Crypto Market Volatility Spillover

FTX’s large SOL holdings (11.2 million tokens worth $1.9 billion) were unlocked in March 2025, potentially triggering market sell pressure. Additionally, a mass selloff of its 257 million FTT tokens could further depress prices.

Legal and Regulatory Risk

The U.S. SEC’s scrutiny over stablecoin classification may restrict liquidity for collateral assets such as USDC. Moreover, some creditors are still suffering actual losses as their claims are valued at 2022 prices instead of current market values.

Cross-Border Payment Complexity

Certain jurisdictions rely on third-party intermediaries to distribute funds, possibly causing delays in disbursement.

Investors can track real-time liquidity changes of SOL, FTT, and other assets via the JuCoin market page.

Creditor Response Strategies and Action Guide

To successfully receive compensation, creditors must complete the following key steps:

• Account Verification and KYC: Submit ID and financial documents through the official FTX portal to avoid disqualification due to incomplete information.

• Choose a Receiving Platform: Link a BitGo or Kraken account to ensure secure fund transfers. Some jurisdictions require additional approval.

• Tax Planning: Fiat compensation may trigger capital gains tax—consult a professional tax advisor.

For disputed claims, FTX has filed lawsuits against platforms like Gate, recovering over $35 million. Further asset recovery may proceed via legal channels.

Future Outlook: Industry Regulation and Market Trust Rebuilding

The FTX bankruptcy case offers several important lessons for the crypto industry:

• Regulatory Strengthening: The incident has accelerated global compliance efforts around exchange asset custody and client fund segregation. Regions like Hong Kong aim to enact crypto asset reporting frameworks by 2026.

• Technological Transparency: FTX plans to utilize blockchain to enhance transaction traceability. In the future, smart contracts may enable automated compensation, reducing human error.

• Institutional Participation Model: The involvement of firms like BlackRock and Jump Trading signals traditional finance’s recognition of crypto bankruptcy processes, potentially fostering specialized asset management services.

Although the FTX event accelerated industry reshuffling, its “cash compensation + dynamic asset liquidation” model may become a reference framework for similar bankruptcy cases. As liquidation mechanisms merge with technological innovation, the crypto market’s resilience will gradually emerge.