FTX is set to distribute over $5 billion to its creditors beginning on May 30, a significant milestone in the ongoing bankruptcy case of the crypto exchange. According to the FTX Recovery Trust, these distributions will vary for four groups of creditors, offering between 54% and 120% of their claims based on the value of their holdings at the time FTX collapsed in November 2022.
This marks the second phase of the bankruptcy estate’s recovery plan. John J. Ray III, the plan administrator, highlighted the unprecedented nature of this distribution process, given the extensive creditor base involved. Creditors classified under Class 5—including lenders and certain trading partners—will see distributions ranging from 54% to 72%. Those with smaller, unsecured claims are expected to receive around 61%, while claims involving inter-company interests will yield 120%.
The distribution process is set to be executed by BitGo and Kraken, who will facilitate payments to eligible creditors within one to three business days following the start date. This new wave of repayments comes at a time when the fallout from FTX’s collapse seems to be diminishing in public memory, especially as the U.S. government, under President Donald Trump, has taken a more favorable stance toward the crypto industry, allowing spot trading in Ethereum and Bitcoin ETFs, among other advancements.
The recovery effort has already begun, with an initial phase in February 2025 that disbursed over $1 billion to those creditors with claims of $50,000 or less. This next phase aims to address the needs of the remaining less than 10% of creditors who have not yet received any payments from the estate.
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