Bankrupt crypto exchange FTX is set to make one of the largest single-day distributions in crypto bankruptcy history on May 30, 2025. The company will repay over $5 billion to creditors with approved claims, marking a significant milestone in the long-running FTX bankruptcy case.

Who is Eligible for the Payout?

To be eligible for this massive payout, creditors must have had an “Allowed” claim status by April 11, 2025. These creditors were required to complete several steps, including Know Your Customer (KYC) verification, submitting tax forms, and selecting a distribution provider. Only those who fulfilled these requirements by the April deadline will receive their payouts on May 30.

The focus of this distribution will be on claims exceeding $50,000. Creditors who missed previous rounds but completed the necessary compliance steps by the deadline will also be included in this round of payouts.

How the Distribution Will Work

For creditors who have selected Kraken or BitGo as their distribution service provider, the payouts are expected to be processed within one to three business days after May 30. This swift distribution process will likely bring significant relief to those affected by the collapse of FTX.

Earlier in the bankruptcy process, FTX had disbursed approximately $800 million to smaller creditors with claims under $50,000. A second round for these creditors is expected later this year, adding up to another $400 million.

Repayment Based on 2022 Prices

It’s important to note that the repayment is calculated based on cryptocurrency values at the time of FTX’s bankruptcy filing in November 2022. This means that the current market prices of crypto assets will not be reflected in the payouts. As a result, creditors will receive the equivalent value based on the asset prices from late 2022, rather than current market rates.

FTX’s bankruptcy estate has accumulated between $14.7 billion and $16.5 billion in assets. The exchange estimates that 98% of eligible creditors will recover at least 118% of their original claim value in cash, although this is based on 2022 prices, not today’s crypto values.

Potential Impact on the Crypto Market

Many analysts believe that the massive distribution of funds could potentially spark a wave of investment back into the crypto market. Given the significant amount of capital that creditors are set to receive, there is optimism that some of these funds could be reinvested into altcoins or other crypto assets. This has led to speculation that the upcoming payouts could trigger an “altcoin season,” where the market sees a surge in the prices of lesser-known tokens.

The distribution also comes as the broader crypto market has experienced a surge in optimism, fueled by macroeconomic factors and the recovery of major cryptocurrencies like Bitcoin and Ethereum.

Final Deadline for Compliance

Creditors who have not yet completed the necessary compliance steps risk losing their claims. They must finalize any remaining KYC verifications or other requirements by June 1, 2025, or forfeit their entitlement to the repayment. FTX has urged all affected parties to check their claim status on the official claims portal to ensure they do not miss out on this crucial payment.

Closing the Chapter on FTX’s Bankruptcy

The upcoming payout represents a major step toward closing the chapter on FTX’s bankruptcy case. Once this distribution is made, it will signal significant progress in the process of compensating creditors and winding down the exchange’s operations. This event is also seen as a crucial moment in rebuilding trust within the crypto industry, which was severely shaken by FTX’s collapse in 2022.

The news has already had an impact on the price of FTX’s native token, FTT, which surged by nearly 12% following the announcement. This is likely a sign of renewed interest in the token as creditors look forward to receiving their payouts.

The FTX Story Continues

In a related development, there have been rumors that Netflix is considering producing a documentary or series about the rise and fall of FTX and its founder, Sam Bankman-Fried. This could further cement the dramatic story of FTX as one of the most consequential events in the history of cryptocurrency.

As May 30 approaches, all eyes will be on FTX as it delivers one of the largest crypto bankruptcy repayments in history. With billions of dollars at stake, this event is likely to have significant ramifications for both creditors and the broader crypto market.