FTX to Repay Over $5 Billion to Creditors on May 30

The bankrupt cryptocurrency exchange FTX will distribute over $5 billion to creditors on May 30. This is one of the largest distributions in cryptocurrency bankruptcy history.

Eligible creditors must have a claim status of "Accepted" as of April 11, 2025. They also need to complete Know Your Customer (KYC) verification, submit tax forms, and choose a distribution service provider.

Will FTX Conduct the Largest Distribution in a Single Day in May?

The payment will focus on claims exceeding $50,000. Creditors who missed previous rounds but completed compliance steps before the April deadline will also be eligible for this distribution.

Additionally, creditors who selected Kraken or BitGo as their distribution service providers can expect to receive funds within one to three business days after May 30.

Previously, FTX distributed approximately $800 million to smaller creditors with claims under $50,000. A second round for this group is expected later this year, totaling an additional $400 million.

All distributions are calculated based on asset values when FTX filed for bankruptcy in November 2022, not current cryptocurrency market prices.

Meanwhile, some analysts suggest that such a large distribution could trigger an altcoin season. This optimism stems from the possibility that creditors will likely reinvest in the market to compensate for missed opportunities.

FTX's bankruptcy estate has collected between $14.7 billion and $16.5 billion. It is expected that 98% of eligible creditors will recover at least 118% of their original claim value in cash.

However, this repayment is based on cryptocurrency values at the time of FTX's collapse in November 2022, not current market prices.

Creditors who do not complete compliance requirements by June 1 risk losing their claim rights. FTX urges all parties to verify their status on the official claim information portal.

The upcoming payment represents a significant step in concluding the prolonged bankruptcy that has transformed industry trust. The FTT Token has also increased by nearly 12% following today's announcement.

As a side note, there are rumors about a potential Netflix series exploring the exchange's collapse and the life of Sam Bankman-Fried.