FTX to Begin $5 Billion Creditor Repayment on May 30

Collapsed cryptocurrency exchange FTX will begin distributing more than $5 billion to creditors starting May 30, 2025, as part of its second major repayment round under its Chapter 11 bankruptcy proceedings. This move comes nearly two and a half years after the exchange’s dramatic collapse in November 2022 and signals a substantial step forward in the ongoing process of compensating victims of one of the largest financial failures in digital asset history.According to court documents and statements from the FTX Recovery Trust, eligible creditors will receive payments via BitGo and Kraken, which were selected as the official distribution platforms. Funds are expected to be processed and delivered within one to three business days following the distribution date, assuming recipients have met all compliance requirements.Repayment Calculations Tied to 2022 Asset ValuationsWhile the $5 billion figure marks a significant distribution, payouts are being calculated based on asset values from the date of bankruptcy filing in late 2022. This has generated frustration among some creditors, as many cryptocurrencies have substantially appreciated in value since that time. Legal experts note that using the 2022 valuations aligns with standard U.S. bankruptcy code, which typically locks asset pricing at the time of filing to ensure uniformity in repayment.Creditors are being grouped into specific claim classes, each with its own repayment percentage:Class 5A (Dotcom Customer Entitlement Claims): 72%Class 5B (U.S. Customer Entitlement Claims): 54%Classes 6A & 6B (General Unsecured and Digital Asset Loan Claims): 61%Class 7 (Convenience Claims): 120%These categories reflect the complexity of claims stemming from FTX’s global operations, which served both retail and institutional clients across multiple jurisdictions.KYC Compliance Required Ahead of DisbursementTo receive payments, creditors must complete Know Your Customer (KYC) verification and submit any necessary tax documentation. Failure to meet these obligations by the designated deadline may result in disqualification from this distribution round. The FTX Recovery Trust has urged all eligible claimants to act promptly to avoid missing out.This marks the second major distribution following a $1.2 billion payout in February 2025, which primarily targeted smaller, convenience-class claims. According to FTX Recovery Trust Plan Administrator John J. Ray III, the latest payout represents a “crucial milestone” in the company’s recovery roadmap.Further distributions are anticipated later in 2025 as additional assets are recovered and outstanding legal claims are resolved. Stakeholders remain hopeful that continued progress will increase total recovery percentages and bring greater closure to one of crypto’s darkest chapters.