This round of payouts is scheduled to take place on or before May 30
The FTX bankruptcy saga is finally nearing a major milestone as the estate has announced it will begin distributing over $5 billion to creditors before the end of May 2025. After nearly 18 months of uncertainty and court proceedings, this development marks a pivotal point in the fallout from one of crypto’s most infamous collapses.
The funds, which will be distributed in fiat rather than crypto, come from asset recoveries, strategic sales, and legal settlements. Creditors are expected to receive as much as 118% of their claims—an unexpected twist given the sheer scale of the platform’s implosion. FTX, once valued at $32 billion, filed for bankruptcy in late 2022 amid fraud allegations and liquidity issues tied to its affiliate Alameda Research.
For affected users, especially retail investors, this payout represents both closure and a rare win in the crypto litigation space. Bankruptcy proceedings in crypto have often left creditors with pennies on the dollar, but FTX’s estate—under new leadership—has exceeded expectations in clawing back assets.
However, critics argue the payout doesn’t absolve the damage done. Regulatory scrutiny has intensified across jurisdictions, and the collapse contributed to broader market distrust in centralized exchanges.
Still, this $5B distribution offers hope that transparent asset management and legal intervention can yield positive outcomes, even after catastrophic failures. It also sets a precedent for how future crypto bankruptcies might be handled—more structure, more accountability, and, ideally, more recoveries.
