The bankrupt cryptocurrency exchange FTX will distribute over $5 billion among creditors on May 30. This payout will be one of the largest one-day distributions in the history of cryptocurrency bankruptcies.
Qualified creditors must have 'Approved' status for their applications as of April 11, 2025. Additionally, they must complete the customer identification procedure (KYC), submit tax forms, and choose a distribution provider.
Will FTX set a record for one-day distribution in May?
The payout will focus on claims exceeding $50,000. Creditors who missed previous rounds but completed the necessary compliance procedures by the April deadline will also be eligible for this distribution.
It is important to note that creditors who chose Kraken or BitGo as their distribution service provider can expect to receive funds within one to three business days after May 30.
Previously, FTX paid out approximately $800 million to smaller creditors with claims up to $50,000. A second round for this group is expected later this year, totaling $400 million.
All distributions are calculated based on the asset values at the time FTX filed for bankruptcy in November 2022, rather than current market prices of cryptocurrencies.
Meanwhile, a number of analysts believe that such a large-scale distribution could trigger an altcoin season. This optimism is based on the assumption that creditors are likely to reinvest funds into the crypto market to compensate for lost opportunities. The assets of the bankrupt FTX have gathered assets valued between $14.7 billion and $16.5 billion. It is estimated that 98% of qualified creditors will receive at least 118% of the initial value of their claims in cash.
However, these payouts are based on the value of cryptocurrencies at the time of FTX's collapse in November 2022, rather than current market prices.
Creditors who do not meet compliance requirements by June 1 risk losing their claims. FTX strongly recommends that all interested parties check their status on the official claims portal.
This upcoming payout is an important step in concluding a lengthy bankruptcy process that has significantly impacted trust in the cryptocurrency industry. The FTT token also rose nearly 12% following today's announcement. Finally, there are rumors of a potential Netflix series dedicated to the collapse of the exchange and the life of Sam Bankman-Fried, the founder of FTX.#BinanceSquare #Write2Earn #crypto #trading #BinancePizza $FDUSD