FTX to Distribute $11.4B to Creditors—Largest Crypto Payout Begins May 2025
FTX, the cryptocurrency exchange that filed for bankruptcy in November 2022, will begin disbursing $11.4 billion to larger creditors on May 30, 2025, as part of its court-approved reorganization plan.
Also read: Three Arrows Capital Wins Court Battle to Boost FTX Claim to $1.53 Billion
The payments are a key development in the exchange’s multi-year bankruptcy process and follow initial distributions to smaller creditors that started in February 2025.
FTX Repayment Structure and Timeline
The $11.4 billion cash distribution targets creditors with claims exceeding $50,000, including Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims.
This follows an earlier payout phase in February 2025 for the “Convenience Class”—creditors with claims up to $50,000—estimated at $6.5 billion to $7.5 billion.
FTX’s total recovered assets are valued between $14.7 billion and $16.5 billion, with the May payout representing the cash allocated for larger claims. The next record date for eligibility is set for April 11, 2025.
Also read: FTX Bybit Lawsuit Update: $228 Million Settlement Reached
FTX filed a Chapter 11 bankruptcy petition in November 2022 after a liquidity crisis associated with the improper use of client money by founder Sam Bankman-Fried.
The Delaware Bankruptcy Court has approved the repayment plan as of Oct. 8, 2024, and effective Jan. 3, 2025. The asset recovery processes, like the sale of FTX’s interest in Anthropic valued at nearly $900 million, have exceeded debt estimates of up to $11.2 billion, as reported by Ecoinimist, thereby providing creditors with a potential payout of 119% of their claim and 9% interest.
Creditors Disagree Over Valuation
While 98% of creditors are positioned to recover more than their original claims, some have criticized the valuation method, which uses November 2022 crypto prices—when Bitcoin was $16,000—rather than current levels above $95,000.
Different groups of creditors, also led by Sunil Kavuri, have challenged the method, arguing it doesn’t account for the losses incurred on their part following the crypto-market rally.
Also read: FTX User Sues Crypto Hedge Fund for More After Shocking Deal
To receive funds, creditors need to undergo KYC verification and submit tax forms through partners like BitGo and Kraken, with payments expected within one to three business days.
Up to 33% of claims may remain unclaimed due to sanctions or verification issues, potentially reducing total disbursements.
The $11.4 billion payout could bring liquidity into the crypto sector, with some placing the figure as high as $2.4 billion potentially returning to circulation. It’s being viewed by analysts as a possible industry confidence builder, although ongoing disagreements over valuation add to the complexities of crypto bankruptcies.
FTX’s payout plan, among the largest in bankruptcy history, captures both the potential for recovery and the complexities of resolving crypto-related insolvencies.
