Key Points:
- FTX to distribute $5B to creditors starting May 30.
- Payouts range from 54% to 120% based on claim class.
- Over $12.6B in assets recovered, with more expected.
FTX will start the second phase of its bankruptcy repayment plan on May 30, 2025. The company plans to distribute over $5 billion to creditors. This follows a $7 billion payout in February, which fully repaid smaller “Convenience Class” claims of $50,000 or less. Those claimants also received 9% annual interest dating back to November 2022.
According to CoinDesk, the new round of payouts will range from 54% to 120% of original claims, based on classification. For example, “Class 5A Dotcom Customers” will receive 72%, while U.S. customers under “Class 5B” will get 54%. “Class 7 Convenience Claims” are set for a full 120% recovery.
FTX selected Kraken and BitGo to handle the payments. Eligible creditors who complete Know Your Customer (KYC) checks, submit tax forms, and set up accounts may receive funds within one to three business days of May 30. However, users in certain U.S. states like New York, Washington, and Maine could face restrictions due to local regulations.
FTX, along with FTX.US and Alameda Research, filed for bankruptcy in November 2022 after an $8 billion shortfall came to light. Although repayments will reflect asset prices from that time, creditors will not benefit from crypto’s recent price surge.
So far, the FTX estate has recovered around $12.6 billion. Recovery efforts could push that total to $16.5 billion, thanks to asset sales and ongoing legal claims. Plan Administrator John J. Ray III described the payout as “unprecedented,” citing the scale of over a million claims.
With repayments on the way, markets are expecting a wave of fresh liquidity from returning funds to former FTX customers, announced by the Group through their official X account.
