As the crypto industry begins to regain momentum, one of its most dramatic sagas moves closer to resolution. FTX, the collapsed cryptocurrency exchange, is preparing to distribute over $5 billion to its creditors starting May 30, marking a major chapter in the firm’s long and complicated bankruptcy case. This repayment comes under a court-approved recovery plan managed by the FTX Recovery Trust, designed to compensate users and creditors who lost funds during the platform’s downfall in November 2022.
Multi-Class Payouts Begin May 30
FTX’s distribution process will cover four distinct classes of creditors, with repayment amounts calculated based on the U.S. dollar value of their holdings at the time of the exchange’s collapse. The payouts range widely—from 54% for some classes to an astonishing 120% for others.
BitGo and Kraken, two of the custodians overseeing the logistics of this mass repayment, will begin transferring funds to eligible recipients from May 30. According to the trust, claimants can expect to receive their payouts within one to three business days following the launch date.
This distribution marks the second phase in the broader recovery roadmap, and it reflects significant progress: over 90% of all claims have already entered the repayment pipeline.
Who Gets What? The Class Breakdown
The largest recoveries are going to intercompany claims—those involving FTX’s various internal subsidiaries—which are being repaid at 120% of their approved claim value. These claims typically arise from transactions between FTX entities and are seen as internal debts that can now be fully cleared thanks to asset recoveries and legal clarity.
Meanwhile, “Class 5” creditors—primarily counterparties of Alameda Research, FTX’s sister trading firm—are set to recover between 54% and 72% of their losses. These include trading vendors, institutional lenders, and others who had substantial exposure through lending or margin positions.
Smaller, unsecured creditors—many of whom were individual retail investors—are also getting a significant portion of their claims back, with a 61% recovery rate.
It’s worth noting that all these figures are calculated in U.S. dollars, based on crypto prices at the time of FTX’s collapse. This means that while claimants are seeing strong dollar returns, they might not recoup the same amount of crypto assets they originally held.
What Sparked This Turnaround?
The ability to repay such substantial sums is largely thanks to the FTX estate’s recovery efforts over the past 18 months. Liquidators and legal teams have clawed back billions through asset seizures, settlements, and the liquidation of FTX’s remaining holdings. Major recoveries have included illiquid venture investments and crypto assets previously held in wallets tied to FTX and Alameda Research.
In addition to financial recoveries, a more favorable regulatory landscape in the U.S. appears to be emerging. The renewed optimism around crypto adoption and institutional interest has boosted asset valuations, indirectly supporting the value of recoverable assets held by the FTX estate.
A Cautionary Closure to a Historic Collapse
FTX’s downfall sent shockwaves across the crypto world in late 2022, with founder Sam Bankman-Fried facing multiple criminal charges related to fraud and mismanagement. Billions in customer funds were wiped out overnight, triggering intense scrutiny from regulators and a market-wide trust deficit.
Now, the payout plan marks a form of closure for many. While the repayments won’t erase the damage done, they offer a degree of restitution and a sign that crypto may be moving into a more stable and accountable phase.
As distributions begin, FTX’s case will likely serve as a blueprint for how future crypto insolvencies are handled. For creditors, it’s a long-awaited moment of recovery. For the industry, it’s a reminder of how transparency, legal oversight, and strong custodianship can eventually restore faith—even after the darkest of crashes.
