FTX’s bankruptcy payout is set to commence on May 30, 2025, with over $5 billion being distributed to creditors, marking a significant milestone in the exchange’s recovery efforts.
FTX Creditors Are Set to Receive $5B in the Second Major Payout
More than two years after its collapse, the bankrupt FTX exchange is planning to pay out $5 billion to its creditors in a second major development. BitGo and Kraken will send the funds, and most claimants will receive payments within 1–3 business days of May 30.
Key Details of the Payout
Who Gets Paid?
- Retail Creditors: Up to 61% of claim
- Alameda lenders and vendors—54–72%
- Claims between companies: 120% highest recovery
How Payments Work
- Payments are calculated based on the crypto prices from November 2022, when Bitcoin was approximately $20,000 compared to its current price of about $100,000.
- Almost all creditors—98%—will receive at least 118% in cash value.
What Creditors Must Do
- Complete KYC verification
- Submit tax forms
- Get started with BitGo or Kraken
Why This Matters
- One of the largest crypto bankruptcy paybacks ever
- Likely to set a precedent for future failures
- The cryptocurrency industry gains some trust again
Controversy Over Valuation
Many creditors are enraged that payments are calculated at 2022 prices—despite a 400% bounce in Bitcoin since then. Nevertheless, bankruptcy laws require using petition-date valuations.
What’s Next?
- Expected future claims (total claims could be $16 billion)
- Disputed claims may result in legal battles
- Scrutinizing the process for fairness
Conclusion
Although the payments won’t completely satisfy creditors, they show important progress in untangling one of crypto’s biggest disasters. The May 30 distribution may set the tone for future bankrupt exchanges’ repayment activities.
