Over $5B to Be Distributed to FTX Creditors Beginning May 30

The FTX Recovery Trust has revealed plans to start distributing over $5 billion to creditors beginning May 30.

This round of payments is the second disbursement for eligible creditors as the organization continues to work on compensating those impacted by its downfall.

Repayment Strategy

In a statement released on May 15, the company’s bankruptcy estate organized creditors into five “convenience classes,” each with designated payout percentages. Creditors in Class 5A are set to receive 72%, while those in Class 5B will get 54%.

Classes 6A and 6B, which include smaller lenders and Alameda Research trading affiliates, will receive 61% distributions each. Lastly, Class 7 Convenience Claims are slated for a 120% return.

John J. Ray III characterized the forthcoming payments as a significant milestone, stating:

“These initial non-convenience class distributions represent a key event for FTX. The size and complexity of the creditor base make this an extraordinary distribution process.”

He further remarked that this announcement reflects the successful results of the team’s recovery and coordination initiatives, underscoring their commitment to maximizing returns for creditors and addressing pending claims.

Eligible creditors should expect to receive their payments via their chosen distribution service provider, such as Bitgo or Kraken, within one to three business days post-May 30. However, those who opt for a Distribution Service Provider will lose the right to receive cash directly from the bankrupt exchange, with all funds handled through their selected provider instead.

The FTX Recovery Trust also indicated that it would disclose the repayment timeline for the next groups of creditors in a timely manner. If all claims are submitted, total repayments could reach approximately $16.5 billion.

In a separate matter, the FTX bankruptcy estate commenced legal action in April against NFT Stars Limited and Delysium, seeking to recover digital assets allegedly held back from the estate as part of its broader efforts to recoup funds and enhance recoveries following its collapse in November 2022.

Concerns Regarding Valuation Approach

FTX currently has around $11.4 billion earmarked for creditor reimbursements. The initial reimbursement phase began on February 18, 2025, targeting creditors with “convenience claims” amounting to less than $50,000. During this phase, roughly $1.2 billion was disbursed.

The next phase will now focus on requests that exceed this amount, including significant investors and institutions that had substantial assets on the platform.

Despite these advancements, the repayment strategy has drawn criticism for basing reimbursements on crypto values at the time of the bankruptcy, leaving some creditors with amounts lower than the current market valuation of their assets.