The FTX Recovery Trust has confirmed that over $5 billion will be distributed to eligible creditors beginning May 30, 2025, marking a major step in the collapsed crypto exchange’s ongoing bankruptcy proceedings.
This upcoming payout is the second major distribution phase and will cover claims from various classes of creditors, as the estate continues efforts to compensate victims of the FTX collapse.
Structured Repayments by Class
According to a May 15 announcement, creditors have been segmented into specific payout categories. The breakdown includes:
- Class 5A creditors: 72% distribution
- Class 5B creditors: 54%
- Classes 6A & 6B (including small lenders and Alameda trading partners): 61%
- Class 7 Convenience Claims: 120%
These structured distributions reflect the ongoing strategy to fairly allocate the recovered funds based on claim types and amounts. Eligible creditors can expect funds to be processed and delivered via their selected Distribution Service Provider—Bitgo or Kraken—within 1 to 3 business days after the May 30 launch.
A Milestone in the FTX Bankruptcy Case
John J. Ray III, who has overseen the FTX bankruptcy estate, described this distribution as a significant milestone:
“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.”
He added that the progress reflects the efficiency of the recovery team and reaffirmed their focus on maximizing returns for all creditors while continuing to resolve outstanding claims.
Total Repayments Could Reach $16.5 Billion
This $5 billion disbursement is part of a broader plan that could see up to $16.5 billion returned to creditors, provided all claims are processed and validated. The initial round of payouts—issued in February 2025—focused on creditors with smaller claims (under $50,000), totaling around $1.2 billion.
Legal Action and Ongoing Criticism
Meanwhile, FTX’s estate is also pursuing lawsuits against NFT Stars Limited and Delysium to recover digital assets allegedly withheld from the bankruptcy estate.
Despite the progress, FTX has faced criticism over its valuation method for repayments, which is based on crypto prices at the time of the November 2022 bankruptcy filing. Given the significant rise in crypto prices since then, some creditors argue the reimbursements don’t reflect the current value of their holdings.
What’s Next?
While this round covers major claims, additional creditor groups are expected to be paid in future waves. The FTX Recovery Trust stated that further distribution timelines will be announced as additional claims are reviewed.
