Embattled crypto exchange FTX is set to begin repaying its creditors as part of its long-awaited bankruptcy recovery process, with initial disbursements totaling $5 billion scheduled to commence on May 30, 2025. The move marks a major milestone in one of the largest and most complex financial collapses in crypto history.
Major Payouts Begin After 18-Month Legal Battle
Following nearly 18 months of legal proceedings, asset recovery, and negotiations with stakeholders, FTX’s restructuring team has confirmed that the court-approved bankruptcy plan will now transition into the distribution phase. The first wave of repayments will cover a broad range of creditors, including retail users, institutional clients, and other financial claimants impacted by the company’s November 2022 collapse.
According to the plan, $5 billion in cash and liquid assets will be distributed initially, with further payouts expected in phases as more assets are recovered or sold. The total liabilities of FTX at the time of bankruptcy were estimated at over $8 billion, but asset sales, clawbacks, and strategic litigation have helped raise significant funds for distribution.
No Equity for Former FTX Token Holders
Despite the progress, the bankruptcy plan leaves FTX Token (FTT) holders with no recovery, classifying their claims as equity rather than debt. This has drawn criticism from parts of the crypto community, with some arguing that the restructuring heavily favors large creditors and institutional investors.
Still, bankruptcy experts say the FTX case has been unusually successful in recovering assets due to the proactive role of the court-appointed CEO John J. Ray III, who led forensic investigations and asset tracing across multiple jurisdictions.
A Long Road for Full Recovery
While the $5 billion payout is significant, many creditors are still expected to face haircuts — meaning they may not receive 100% of their original funds. The exact percentage of recovery will vary depending on the class of creditor and final asset realization in the coming months.
There’s also the question of the timing of subsequent payouts. Some claims could take years to resolve, particularly those involving offshore assets, third-party disputes, or ongoing litigation related to mismanagement under former CEO Sam Bankman-Fried.
Conclusion
FTX’s upcoming May 30 payout marks a critical step forward in restoring some level of trust and restitution to those affected by its dramatic downfall. While full recovery remains uncertain for many, the substantial $5 billion distribution offers hope that justice and accountability are progressing — albeit slowly — in one of crypto’s most high-profile bankruptcies.