FTX Trading Ltd., the parent company of the bankrupt crypto exchange, will begin distributing more than $5 billion to creditors beginning on May 30 as part of the second phase of its Chapter 11 reorganization plan.
“FTX will commence distributions to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements on May 30, 2025,” the FTX estate wrote in an announcement on Thursday.
Eligible creditors are expected to receive their funds from either Bitgo or Kraken within one to three business days beginning May 30, 2025.
While the FTX estate has been able to make customers “whole,” in part due to the exchange’s successful investments in startups like AI studio Anthropic and tokens like Solana, many former customers have criticized the effort. The estate is paying users the dollar-value of their former exchange account balances at the time FTX declared bankruptcy in November 2022, during a market low.
Still, many crypto traders think the disbursements could be a boon for token prices if traders reinvest. “Fresh powdaaaaaa,” popular trader ICOBeast wrote on X.
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