High-Stakes Payout Looms as FTX Prepares $5 Billion Distribution

TLDRFTX will begin distributing more than $5 billion to approved creditors on May 30 under its bankruptcy plan.The distribution will prioritize creditors with claims exceeding $50,000 who completed all compliance requirements by April 11.Claimants who chose Kraken or BitGo as their distribution provider may receive funds within one to three business days.All payouts are based on asset values from November 2022 and do not reflect current crypto market prices.FTX has already distributed $800 million to smaller creditors and plans a second round of $400 million later this year.FTX will begin distributing over $5 billion to creditors on May 30 under its bankruptcy plan. The distribution will cover approved claims primarily exceeding $50,000, based on eligibility confirmed by April 11. This marks a major development in the FTX bankruptcy process, which began after its 2022 collapse.FTX to Prioritize Large Creditor PayoutsFTX will focus this distribution round on creditors with approved claims over $50,000 who have completed all compliance steps. Eligible participants must have completed Know Your Customer checks, submitted tax documentation, and chosen a designated distribution provider. Those who missed earlier payments but met the compliance deadline will also be included.BREAKING: FTX TO DISTRIBUTE $5B TO CREDITORS ON MAY 30THWhat do you think happens next? pic.twitter.com/NjATSkqaLT— Arkham (@arkham) May 15, 2025The funds will be disbursed through providers selected by the claimants, with Kraken and BitGo listed among the approved options. According to FTX, those using these platforms may receive funds within one to three business days post-May 30. The process reflects the estate’s effort to prioritize timely disbursement for higher-value claims.Distributions are calculated using asset values as of FTX’s bankruptcy filing date in November 2022. Therefore, the payout does not reflect current market prices, which could be significantly higher.FTX Urges Action Before June DeadlinePreviously, FTX distributed around $800 million to creditors with claims below $50,000. A second and final round for this group will occur later in 2025 and total approximately $400 million. These smaller payouts help ensure a wider base of claimants receives recovery under the court-approved plan.While the smaller payouts are separate from the $5 billion round, they remain part of the larger restructuring plan. All figures are still calculated using the November 2022 reference date for asset pricing.FTX continues to urge all eligible parties to complete any pending steps before the final compliance deadline on June 1. Those who do not meet the requirement risk full forfeiture of their claims. The estate maintains a public portal for creditors to verify their current status and required documents.Meanwhile, the FTX estate estimates that 98% of eligible creditors will recover at least 118% of their original claim in cash. These returns are calculated from the time of the bankruptcy filing, not current token prices. The plan reflects FTX’s efforts to maximize recovery and conclude proceedings.The post High-Stakes Payout Looms as FTX Prepares $5 Billion Distribution appeared first on CoinCentral.