FTX to Distribute $5 Billion to Creditors on May 30 in Historic Crypto Bankruptcy Payout

Bankrupt cryptocurrency exchange FTX is set to make a landmark distribution of over $5 billion to its creditors on May 30, marking one of the largest single-day repayments in crypto bankruptcy history. The move signals a significant milestone in the company’s prolonged wind-down following its dramatic collapse in late 2022.

To qualify for the payout, creditors must have had an “Allowed” claim status as of April 11, 2025, and must have completed Know Your Customer (KYC) verification, submitted the necessary tax documentation, and selected a preferred distribution provider. The bulk of the upcoming distribution will target claims exceeding $50,000, though eligible smaller claimants who completed compliance steps by the deadline are also included.

Swift Payouts via Kraken and BitGo

For those who chose Kraken or BitGo as their payout platform, funds are expected to arrive within one to three business days after May 30. This distribution follows an earlier round where FTX paid out approximately $800 million to smaller creditors—those with claims under $50,000. A second round for this group, expected later this year, will add another $400 million in repayments.

All repayments are being calculated based on asset values at the time of FTX’s bankruptcy filing in November 2022, not current market prices. That means the recent surge in cryptocurrency prices won't affect the amounts being returned to creditors.

Despite that, the announcement has sparked speculation among market watchers. Many analysts believe the influx of funds could ignite a new wave of investment, potentially fueling an altcoin rally as creditors seek to re-enter the market and recoup missed opportunities.

Near-Full Recovery for Most Creditors

The FTX bankruptcy estate has reportedly secured between $14.7 billion and $16.5 billion in recoverable assets. According to the estate’s estimates, 98% of eligible creditors are expected to receive at least 118% of their original claim value in cash—a surprisingly strong recovery given the scale of the collapse.

However, the estate has made it clear that creditors who fail to meet compliance requirements by June 1 risk forfeiting their claims. All affected parties are urged to confirm their eligibility through the official claims portal before the deadline.

A Turning Point for Crypto’s Reputation?

This distribution marks a pivotal moment not only for FTX’s long and turbulent bankruptcy process but also for the broader crypto industry. The exchange’s collapse in 2022 was a watershed moment that eroded public trust and triggered a wave of regulatory scrutiny. Now, with billions flowing back to creditors and recovery rates exceeding expectations, FTX’s wind-down may help restore some confidence in the sector’s ability to self-correct.

Meanwhile, speculation is swirling about a potential Netflix series chronicling the rise and fall of FTX and its controversial founder, Sam Bankman-Fried—a sign of the saga’s ongoing grip on the public imagination.