Key Takeaways
- The distribution applies to creditors with approved claims as of April 11, 2025, provided they have completed KYC, submitted the required tax documentation, and designated a payment provider
- BitGo and Kraken will facilitate the transfers, which are expected to process within one to three business days after the release date.
Bankrupt crypto exchange FTX is set to distribute over $5 billion in repayments to its creditors on May 30. The announcement came via a notice from the FTX Recovery Trust on May 15, signaling a critical milestone in the court-approved reorganization plan.
The distribution applies to creditors with approved claims as of April 11, 2025, provided they have completed Know Your Customer (KYC) verification, submitted the required tax documentation, and designated a payment provider. As per the official statement from the FTX recovery Trust, BitGo and Kraken will facilitate the transfers, which are expected to process within one to three business days after the release date.
This round will cover claims exceeding $50,000. It follows an earlier $800 million distribution made to smaller claimants in February. A second batch for that group is anticipated later in 2025, projected at around $400 million.
FTX’s restructuring framework groups creditors into five “convenience classes,” offering returns between 54% and 120% of approved claims. However, those figures are anchored to valuations from November 2022—the date of FTX’s bankruptcy—not current crypto market prices. This distinction has drawn sharp criticism, as many digital assets have significantly appreciated since the collapse.
According to estate estimates, about 98% of eligible creditors will receive at least 118% of their claim value in fiat. The total payout could reach as high as $16 billion, depending on final verified claims. Creditors who have not completed compliance requirements by June 1 risk forfeiting their claims.
FTX Founder Sam Bankman-Fried is serving a 25-year prison sentence for fraud. Former Alameda CEO Caroline Ellison and FTX executive Ryan Salame received sentences of two and 7.5 years, respectively.
The repayment comes amid rife speculation around a potential altcoin market surge. Some analysts suggest that the influx of capital into creditor hands could flow back into the crypto ecosystem, potentially fueling renewed demand for alternative tokens.
FTX urges all claimants to verify their account status via the official claims portal ahead of the final compliance deadline.
