FTX to Distribute Over $5 Billion in Repayments to Creditors on May 30

In Brief:

The FTX Recovery Trust will begin distributing over $5 billion to creditors on May 30, as part of the second phase of bankruptcy repayments.

Payouts range from 54% to 120% of original claims, covering four classes of creditors.

FTX is set to distribute more than $5 billion in bankruptcy repayments starting May 30, according to a statement from the FTX Recovery Trust. The funds will be sent to four groups of creditors as part of the estate’s second phase of distributions, marking a major milestone in the ongoing recovery process.

Distributions will range from 54% to 102% of the original value of claims based on users' FTX balances at the time of the exchange’s collapse in November 2022. Some inter-company claims will even receive 120% payouts, due to the unique structure of creditor classifications.

John J. Ray III, FTX Recovery Trust plan administrator, described the effort as “an unprecedented distribution process,” given the scope of the creditor base.

Class 5 creditors—including lenders, trading partners, and vendors connected to Alameda Research—are expected to receive 54% to 72% of their claims. Small, unsecured claimants will get approximately 61%, while inter-company interests will be fully paid out and more.

Payments will be facilitated through BitGo and Kraken, and are expected to reach recipients within one to three business days after the May 30 launch date.

This second wave follows the February rollout, in which over $1 billion was distributed to creditors with claims under $50,000. The Trust notes that this next phase will cover the remaining less than 10% of FTX creditors still awaiting their first payout.

The announcement comes as the crypto industry rebounds sharply, aided by favorable U.S. regulatory shifts and renewed institutional interest. FTX’s collapse—once a symbol of crypto’s darkest chapter—is now giving way to one of the largest creditor recoveries in the industry’s history.

‍