Bankrupt Crypto Exchange FTX to Distribute More Than $5 Billion to Creditors on May 30

Bankrupt crypto exchange FTX will distribute more than $5 billion to creditors on May 30. The payout marks one of the largest single-day distributions in crypto bankruptcy history.

The bankrupt crypto exchange FTX is set to distribute more than $5 billion to creditors on May 30, marking one of the largest single-day distributions in crypto bankruptcy history.

The payment will focus on claims exceeding $50,000. They must also have had an “Allowed” claim status as of April 11, 2025, complete Know Your Customer (KYC) verification, submit tax forms, and select a distribution provider.

Creditors who selected Kraken or BitGo as their service provider can expect to receive funds within one to three business days after May 30. Those who opted for BitPay may experience a delay of up to two weeks.

Earlier this year, FTX completed the distribution of around $800 million to smaller creditors with claims under $50,000. A second round for this group is expected later in 2025, aiming to distribute an additional $400 million.

It’s worth noting that all distributions are calculated based on asset values at the time of FTX’s bankruptcy filing in November 2022, not the current crypto market prices.

Several analysts believe that such a massive distribution could spark an altcoin season. This optimism stems from the narrative that creditors will likely invest the recovered funds back into the market to make up for their missed opportunities.

FTX’s bankruptcy estate has gathered between $14.7 billion and $16.5 billion in assets. It estimates 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 the current market prices.

Creditors who fail to complete compliance requirements by June 1 risk forfeiting their claims. FTX urges all affected parties to verify their status on the official claims portal.

The upcoming payout represents a major step in closing the long-running bankruptcy case that has reshaped crypto industry trust. FTT token also surged nearly 12% following today’s announcement.

On a side note, there are rumors about a potential Netflix series around the exchange’s collapse and the life of Sam Bankman-Fried.