FTX, a crypto exchange that went bankrupt in 2022, is set to repay over $5 billion to affected creditors. As per recent reports, the exchange will make the repayment on May 30, 2025. The payment comes as part of the second distribution phase of the Chapter 11 Plan of Reorganization. 

The payment is also expected to be among crypto’s largest single day payouts associated with a bankruptcy lawsuit. However, FTX will only distribute the funds only to creditors that have completed specified pre-distribution steps. 

FTX Creditor Distributions to Exceed $5B in the Upcoming Round

As per a press release by PR Newswire, FTX announced earlier on May 15 that it will be distributing over $5 billion to its creditors on May 30. The upcoming repayment will focus on the Convenience and Non-Convenience Classes. This follows a previous disbursement of $800 million to creditors with claims below $50,000 earlier in February 2025. Additionally, another $400 million will follow later this year for smaller claimants. 

NEW: FTX RECOVERY TRUST TO COMMENCE DISTRIBUTIONS OF MORE THAN $5 BILLION TO CREDITORS IN SECOND DISTRIBUTION ON MAY 30, 2025 pic.twitter.com/ke542LPmjj

— DEGEN NEWS (@DegenerateNews) May 15, 2025

In the May 30 payout, Class 5A Dotcom Customer Entitlement Claims will receive 72%. Class 5B U.S. Customer Entitlement Claims are set to get 54%. Meanwhile, Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims will each get 61%. Class 7 Convenience Claims will receive 120% of their allowed claims.

In a comment about the upcoming repayment, John J. Ray III, FTX’s Plan Administrator, said: “These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base makes this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals.” 

He further added that the team will remain focused on recovering more assets and closing remaining claims. Since filing for bankruptcy, the FTX bankruptcy estate has collected between $14.7 billion and $16.5 billion. These reserve funds allow the exchange to pay out based on the prices before the collapse in November 2022. This approach was included in the reorganization plan approved by the court.

FTX’s Repayment Eligibility Rules and Compliance Deadline

To receive distributions, creditors must be eligible for the repayment. In particular, eligible creditors must have been marked as “Allowed” for repayment by April 11, 2025. However, those who missed earlier rounds could still qualify if they met compliance before the deadline. FTX has also set new compliance deadlines for those who want to be included in future distributions.

FTX also requires everyone to complete key Know Your Customer (KYC) steps, provide tax forms, and register with a distribution platform. If these requirements aren’t met by June 1, claimants risk not receiving their repayment.

The now-collapsed FTX exchange also confirmed that customers that register with a Distribution Service Provider (BitGo or Kraken) will start to receive payments through the platforms. But this means that these creditors give up the option to receive payments directly from FTX. 

Additionally, customers with transferred claims will only be paid if their transfer is listed on the official register. The Notice and Claims Agent will handle those processes, and a 21-day waiting period must pass without dispute. 

Repayment Amount to be Based on 2022 Prices 

While prices of most cryptocurrencies have gone up since 2022, FTX will repay creditors based on prices as of the time of its collapse. This is in accordance with the Chapter 11 Plan of Reorganization approved by the court. 

FTX estimates that 98% of eligible creditors will receive at least 118% of their allowed claim amount. That includes both principal and interest as per plan classifications. The recovery percentages show strong asset management during the legal process.

Further announcements will cover new distribution dates, especially for those who missed the initial eligibility deadline. The exchange will continue to offer updates via its customer portal.