Creditors Receive Over $5.4 Billion From FTX Distribution
FTX is dishing out over $5.4 billion to creditors starting May 30, 2025, part of a plan to settle Chapter 11 bankruptcy filings walked through in late 2023. The struggling crypto exchange is currently distributing funds across a broad spectrum of claimants, including the "Convenience Class" and larger account holders. This round of payouts kicked off on Friday, with recipients expected to receive their funds within a few business days.
Money is moving via trustworthy platforms like BitGo and Kraken. In a press release, FTX mentioned that more payout phases will be announced as they become available.
Where the Money Comes From
With roughly $11.4 billion in cash reserves, FTX is dipping into these funds to make these payouts. A significant portion of the recovery can be attributed to higher crypto prices and FTX's stake in Anthropic, an AI-focused research firm. The exchange owns approximately 8% of Anthropic, a stake that has increased in value due to the growing global interest in AI.
According to court-approved plans, FTX aims to return between $14.7 billion and $16.5 billion to creditors. The majority of customers can expect to receive around 119% of the value they had when FTX went under in November 2022.
Creditor Payout Structure
The distribution apportions different payout rates to varying creditor classes:- Class 5A (Dotcom Customer Claims): 72% payout- Class 5B (U.S. Customer Claims): 54% payout- Class 6A (General Unsecured Claims) and 6B (Digital Asset Loan Claims): 61% payout each- Class 7 (Convenience Claims): 120% payout
Over 90% of claims have entered the distribution process, with creditor compensation based on the value of their claims at the time of FTX's collapse in 2022, not the current market value of digital assets.
Additional Upcoming Payments
This represents the second major distribution, with additional payments expected as assets are recovered and sold. This complex repayment process is due to the sheer size and diversity of the creditor base, making it one of the largest distributions in bankruptcy history.
The upcoming payouts from FTX, a struggling crypto exchange, are being funded through a combination of their cash reserves and a significant portion of the recovery coming from higher crypto prices and their stake in Anthropic, an AI-focused research firm. This technology-driven growth, along with the funds distributed via trustworthy platforms like BitGo and Kraken,will enable FTX to deliver more payout phases to their creditor base in the business sector.
