FTX will distribute $5.4 billion to creditors beginning May 30 from $11.4 billion in reserves.
98% of customers will receive about 119% of their original claim value.
Payouts are supported by FTX’s 8% stake in AI firm Anthropic and crypto price gains.
Bankrupt crypto exchange FTX is set to disburse $5.4 billion to eligible creditors starting May 30. The announcement follows months of preparations and court approvals. Payments will be processed through BitGo and Kraken and are expected to reach recipients within one to three business days.
Payments to Begin from $11.4 Billion Reserve
The funds will come from FTX’s available $11.4 billion cash reserve. A press release confirmed that further disbursement phases will be communicated in future updates. The latest payout forms part of the broader distribution plan approved by a U.S. bankruptcy court in October 2023.
That plan allows total reimbursements estimated between $14.7 billion and $16.5 billion. The court previously authorized FTX to begin reimbursing select customers earlier this year. Smaller account holders in the exchange’s “Convenience Class” started receiving their funds in February. According to the approved plan, 98% of FTX’s customers are scheduled to receive around 119% of their claim value.
Valuations are based on digital asset prices recorded at the time of the exchange’s bankruptcy filing in November 2022. The significant recovery rate is due to favorable market shifts and asset recoveries. A notable boost comes from FTX’s retained 8% stake in artificial intelligence firm Anthropic. The rising value of that stake has enhanced the total available pool for creditors.
FTX Collapse Triggered by Fund Mismanagement
FTX collapsed after allegations of severe fund mismanagement emerged. Reports linked the misuse of customer deposits to Alameda Research, a sister trading firm under the same leadership. Billions in user funds were reportedly loaned to Alameda without disclosure.
Following a swift loss of user trust, the exchange halted operations and filed for Chapter 11 bankruptcy in November 2022. The legal proceedings have since unfolded in U.S. bankruptcy court, aiming to recover and return as much value as possible to former users. Payouts starting May 30 will reach both institutional and individual account holders. Those eligible will receive their share via either BitGo or Kraken. Creditors are expected to monitor their accounts for the funds within three business days. FTX has not yet confirmed the exact dates for upcoming distributions beyond May. However, court documents indicate that the payout process will continue in phases. Users can expect additional details to be shared through formal channels in the coming weeks.
