FTX To Distribute Over $5 Billion to Creditors in Second Round of Payouts

Key Takeaways

• FTX will begin its second round of creditor repayments on May 30, 2025.
• Over $5 billion in claims will be distributed in this round.
• The first round began in February, settling $1.2 billion in smaller claims.

Bankrupt crypto exchange FTX is preparing to distribute over $5 billion in its second round of creditor payouts, set to begin on May 30, 2025.

The payments are part of the ongoing Chapter 11 bankruptcy process that began after the exchange’s collapse in late 2022.

This latest round will cover larger claims and follow the initial $1.2 billion payout that started in February. The first round was limited to customers with claims under $50,000.

FTX Trust to Reimburse $5B in Second Payout

According to the FTX Recovery Trust , the upcoming payments will be made via select exchange partners, including BitGo or Kraken, and are expected to reach eligible recipients within one to three business days.

The distribution will prioritize various creditor classes:

• 72% to Class 5A (Dotcom customer entitlements).
• 54% to Class 5B (U.S. customer entitlements).
• 61% to Classes 6A and 6B (general unsecured and digital asset loan claims).
• Class 7 (convenience claims) will receive a full 120% recovery.

While customers won’t receive their original crypto holdings, they will be reimbursed in cash based on asset values as of November 2022, the month FTX filed for bankruptcy.

FTX To Repay $11.4 Billion in Total Claims

FTX’s fall marked one of the most dramatic collapses in crypto history.

Following its bankruptcy, court-ordered repayments totaled $11.4 billion across multiple creditor classes, making it one of the largest financial recoveries in U.S. bankruptcy history.

Asset sales and a strong crypto market recovery helped the estate recoup enough to meet the payouts.

However, customers will still face losses due to valuation differences and the timing of the reimbursement.

Why Taking Cash Didn’t Turn Out So Bad

While many FTX users had hoped to recover their crypto assets, early payouts, particularly for smaller claims, turned out to be unexpectedly favorable.

Creditors with claims under $50,000 received 118% of their allowed amounts, including interest. For some, that meant walking away with more than they lost.

The catch? All repayments are made in U.S. dollars and pegged to November 2022 crypto prices, well below current market levels.

This has frustrated some larger creditors, especially those holding Bitcoin or Ethereum. “The current worth of my coins is more than $40,000, but the system forces me to accept $16,000,” one Reddit user wrote.

Still, some analysts argue the outcome isn’t as grim as once feared. For smaller claimants, opting for cash early may have been the smartest move.