Over $5 billion will be distributed to FTX creditors from the bankrupt crypto exchange’s estate in the coming weeks

The upcoming May 30 distributions are the second phase of the FTX bankruptcy estate’s recovery plan.

Bankrupt crypto exchange FTX is set to distribute over $5 billion to creditors from its estate in the coming weeks as the next wave of reimbursements is set to take place on May 30, according to the FTX Recovery Trust’s statement released yesterday (May 15).

The upcoming May 30 distributions are the second phase of the FTX bankruptcy estate’s recovery plan. With this next wave, four groups of creditors are set to be reimbursed, with distributions ranging between 54% and 102% of the value of their FTX holdings at the point the exchange collapsed in November 2022.

FTX Creditor claims

FTX Customers:

Class 5: Claims > $50k5A: FTX International5B: US

Class 7: Claims <=$50k7A: FTX Intl7B: US

Class 6: Non Customers

Can find your class on your FTX voting form pic.twitter.com/pTZ10Q7q7u

— Sunil (FTX Creditor Champion) (@sunil_trades) May 16, 2025

The FTX Recovery Trust plan administrator John J. Ray III said yesterday in the statement:

“These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base make this an unprecedented distribution process.”

“We are grateful for the contributions of the FTX Recovery Trust, BitGo, and Kraken, which have enabled us to reach this point.”

The administrator went on to add that the process to identify and notify creditors has been “substantial and complex.”

“We are proud to have completed this process efficiently and effectively, and we will continue to keep creditors informed as the bankruptcy cases progress.”

Under the recovery plan, members of creditors Class 5—a group that includes lenders and trading partners of Alameda Research and other traders and vendors—will receive distributions between 54% and 72% of their claims.

Another group of FTX victims with small, unsecured claims can expect disbursements of 61%, while claims involving inter-company interests will be paid out at 120%.

DISCOVER: 12 Best AI Crypto Coins to Invest in 2025

BitGo and Kraken are working with the Recovery Trust and will send the funds directly to eligible creditors’ exchange accounts. The process is expected to take one to three business days from May 30.

In total, over $5 billion is set to be distributed on May 30. International claims over $50k are set to receive 72% of their lost portfolio value while $50k+ claims from within the US will receive 54%.

Strangely, claims on smaller portfolios, in particular, those under $50k, are scheduled to receive 120%, providing no information on why any creditor would receive more than the original value of their lost portfolio.

Bitcoin is currently trading at around $103,800 and is up 2% on the day following the news of FTX’s upcoming repayments at the end of the month.

(COINGECKO)

Why Is $5 Billion In Reimbursements Bullish For Bitcoin: New All-Time High Soon?

Put simply, these repayments from the FTX trust will lead to a huge liquidity injection into the crypto markets. The repayments on May 30 will see a distribution of significant capital to creditors.

These creditors are a blend of retail and professional crypto investors, and as a result, they are likely to reinvest these funds back into the markets. After already suffering once with the collapse of FTX and the tumultuous journey to get their funds back, the creditors may act more risk-averse with the recovered funds, making Bitcoin the most logical investment choice.

This influx of capital could increase buying pressure and drive Bitcoin’s price higher, leading into June’s FOMC Fed meetings, which many are anticipating rate cuts. If Powell does indeed slash the interest rates in June, it would give market participants the green light to pour into risk-on assets once more.

Lastly, the current market sentiment heading into these repayments is incredibly high, especially compared to November 2022 when FTX initially crashed and BTC was at rock bottom, trading for $16,000.

We’re currently in the middle of the 12-16 month period following a Bitcoin halving that has historically been the best period for BTC price action. This, coupled with the upcoming FOMC meetings and $5 billion of fresh capital flowing into crypto, could kickstart Bitcoin’s run to $150,000 and above in the coming months.

Both $5b FTX creditor payout and Bitcoin Vegas happening at the end of the month

all time highs within 2 weeks time