FTX Prepares $5B Creditor Payout—Just Two Years Late and a Dollar Short

Bankrupt crypto exchange FTX finally sets a date to repay creditors—because nothing says ’trust us’ like a two-year delay on making victims whole.

The payout begins May 30, 2025, marking what experts call ’the slowest rug pull in crypto history.’

Active creditors: Check your wallets. Passive-aggressive creditors: Check your blood pressure.

Bonus jab: At least they’re not Solana validators—those guys are still waiting for FTX’s staked SOL to unstake.

• The defunct cryptocurrency exchange partnered with Kraken and BitGo to facilitate the distribution of funds to creditors.

• FTX Recovery Trust will continue with recovering more funds for creditors and resolving outstanding claims. 

FTX Recovery Trust announced the second phase of the funds distribution will commence on May 30, 2025. According to the announcement, FTX will distribute more than $5 billion to creditors in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements.

The FTX Recovery Trust partnered with Kraken and BitGo cryptocurrency exchanges to ensure seamless distribution of the funds in digital assets, including stablecoins. To all eligible FTX creditors in the second distribution plan, the funds will likely be processed within 1-3 business days from May 30.

“These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base make this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals,” John J. RAY III, Plan Administrator of the FTX Recovery Trust, noted.

The FTX team embarked on a journey to distribute $14-$16 billion to creditors after years of litigation. Earlier this year, FTX distributed $1.2 billion, with more funds allocation expected in the NEAR future.

Market Impact of the FTX Funds Distribution 

The distribution of FTX funds to creditors has coincided with a wider crypto market bullish recovery, led by Bitcoin pump above $100k. The distribution of more than $5 billion will likely add further buying pressure to the altcoin market, as crypto analysts forecast an altseason in the near future. 

Cryptocurrency exchanges Kraken and BitGo will benefit significantly from the FTX funds distribution as more creditors register to receive their funds. Ultimately, the resolution of the FTX bankruptcy will open a new chapter of mainstream adoption of cryptocurrencies via regulated exchanges.