FTX’s Comeback Strategy: $5 Billion Payout and What It Means for Creditors

FTX announces a $5 billion payout to creditors as part of its recovery plan, signaling significant progress after its collapse.

Areeba Rashid
May 16, 2025
8:08 am

Areeba Rashid

Areeba Rashid is a dedicated crypto news writer with a passion for making complex topics accessible to everyone. She covers the latest developments in the crypto world, including in-depth price analysis, helping readers stay informed and make sense of market trends.

FTX announces $5 billion distribution to eligible creditors as part of its Chapter 11 reorganization plan.
Creditors must complete pre-distribution steps to receive payments via Bitgo or Kraken within 1-3 days.
The $5 billion distribution signals significant progress in the company’s recovery efforts.

FTX Trading Ltd. and the FTX Recovery Trust announced that they are giving out another $5 billion to those who were affected by the FTX collapse. Starting May 30, 2025, funds will be sent to the holders approved by the company’s Chapter 11 reorganization plan. This move is an important part of FTX’s efforts to pay back those affected by the exchange’s failure.

This next phase of payout will include creditors from both the Convenience and Non-Convenience classes. For users to receive payment, they need to finish the required pre-distribution steps. The company will be making the payout with BitGo or Kraken, and creditors should get their money within one to three days after May 30.

(1/3) FTX today announced it is set to distribute more than $5 billion in its Second Distribution to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements on May 30, 2025.
— FTX (@FTX_Official) May 15, 2025

FTX Breakdown of Payouts

The announcement was made after the first distribution in February 2025. Most of the early payout went to cover claims related to customer entitlement and general claims. FTX broke records for Class 5 customer claims and Class 6 general claims. The organization is making further attempts to settle its debt by pushing out this second distribution.

John J. Ray III, as plan administrator for FTX Recovery Trust, called the second distribution a major milestone. According to him, the first non-convenience class FTX distributions mark a major progress for the platform. It signifies that our recovery and coordination efforts are paying off. Our main goal is to recover more financial support and settle all disputes owed to creditors as soon as possible.

Those whose debts are included in the allowed classes will get different amounts. The distribution will give 72% of the money to creditors in class 5A, while 54% will go to members of class 5B. Creditors in 6A and 6B will get 61% payouts. Meanwhile, creditors in class 7 Convenience Claims are projected to get 120% of their claims back.

FTX Collapse and Fallout

FTX was unable to continue in November 2022 due to fraudulent issues by the company’s officials, including Sam Bankman-Fried. At its highest point, FTX’s token FTT was valued at $25. With the collapse, FTT’s price fell to just $0.87. FTX Token is currently up 13% since the press release and has reached a price of $1.33.

The release of $5 billion is seen as an important milestone on FTX’s path to 100% recovery. The company is still striving to settle all its obligations and claims with the large number of creditor groups.