The FTX Exchange plans to distribute over $5 billion to creditors this Friday, May 30. This marks the second major payout in what has become the largest cryptocurrency bankruptcy recovery in history.
The FTX Recovery Trust announced that eligible creditors will receive between 54% and 120% of their original claims, depending on their classification under the court-approved Chapter 11 plan. This second distribution follows an initial $7 billion payout that began in February 2025, bringing the total recovered funds to over $12 billion.
Distribution Structure
The distribution follows a carefully structured waterfall system based on creditor classifications:
- Class 5A Dotcom Customer Entitlement Claims: 72% recovery
- Class 5B U.S. Customer Entitlement Claims: 54% recovery
- Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims: 61% recovery each
- Class 7 Convenience Claims: 120% recovery (full repayment plus 9% annual interest)
The Convenience Class, consisting of individuals with claims of $50,000 or less, receives the most favorable treatment. This entails full repayment plus interest dating back to November 2022.
Kraken and BitGo will facilitate the massive payout, ensuring funds reach eligible creditors within one to three business days from Friday. The platforms were ideal due to their industry reputation, strong security measures, and experience in managing complex crypto repayments.
FTX Recovery Efforts Continue
This Friday’s distribution represents just one phase of FTX’s comprehensive recovery plan. The estate currently holds approximately $12.6 billion, with potential recoveries reaching $16.5 billion as advisers continue to sell assets and pursue legal action against entities that owe money to the company.
Their team has embarked on a journey to distribute between $14 and $16 billion to creditors after years of litigation and asset recovery efforts. Additional distributions are expected to take place throughout 2025, contingent upon the recovery of assets and the outcome of litigation.
If this process proves transparent and efficient, it may demonstrate that accountability is possible in the cryptocurrency industry. This could potentially lead to stronger regulatory frameworks and enhanced user protection measures.
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