FTX Creditors to Receive 54%-120% Payouts Starting May 30

The FTX Recovery Plan for Creditors is set to commence on May 30, marking a significant milestone in the distribution of funds to creditors. The plan involves the distribution of over $5 billion in digital assets, with payouts ranging from 54% to 120% of the original claim values. This distribution is being overseen by BitGo and Kraken, two prominent companies in the digital asset management space. The recovery plan aims to distribute at least 118% of the original claim values in cash to 98% of verified creditors, underscoring the importance of timely verification for claimants. The distribution is part of a broader effort to compensate creditors affected by the collapse of FTX, with the goal of ensuring that a majority of creditors receive their due compensation. This historic payout is expected to provide much-needed relief to creditors who have been awaiting compensation since the collapse of FTX. The distribution process is being carefully managed to ensure transparency and efficiency, with BitGo and Kraken playing crucial roles in the handling and transfer of digital assets. The successful execution of this recovery plan will not only benefit creditors but also serve as a testament to the resilience of the digital asset industry in the face of adversity.

Under the FTX Recovery Plan for Creditors, the estate has grouped affected parties into specific classes, each receiving different recovery percentages. “Class 5” claimants, including Alameda Research lenders, vendors, and trading counterparties, will see payouts ranging from 54% to 72%. Meanwhile, unsecured retail claimants can expect to recover around 61% of their original claims. Notably, intercompany claims between FTX’s affiliated entities will be paid out at an impressive 120%. This tiered FTX payout schedule reflects the court-approved framework aimed at compensating affected parties as fairly as possible. Over 90% of claims are already in the distribution pipeline, according to the FTX Recovery Trust. This progress highlights the exchange’s efforts to restore trust after one of the industry’s most damaging collapses. By prioritizing transparency and structured repayments, the estate aims to close a turbulent chapter in crypto history while setting a precedent for future bankrupt exchange updates.

To execute the creditor distribution process, BitGo and Kraken will serve as official custodians. These platforms will begin transferring funds as early as May 30, with most eligible claimants receiving their payouts within three business days. This rapid distribution aligns with the goals of the FTX Recovery Plan for Creditors. This promises timely, trackable, and compliant payments. The FTX Recovery Trust chose these custodians for their strong security capabilities and proven experience handling large-scale crypto repayments. Their involvement reinforces confidence that the disbursement will proceed efficiently and without unnecessary delays, giving much-needed closure to thousands of affected users.

The FTX Recovery Plan for Creditors represents more than just a payout, it’s a pivotal moment in the evolution of crypto accountability. With a structured FTX payout schedule, the estate is demonstrating a clear path forward from crisis to resolution. This recovery also signals that comprehensive frameworks for bankrupt exchange updates are achievable with the right custodians, court approvals, and regulatory alignment. As the industry rebuilds post-crisis, this plan could become a model for future crypto repayment news. It underscores the need for better oversight and secure infrastructure across all centralized exchanges.

The FTX financial recovery strategy for Creditors has reached its execution phase. All eyes are now on the success of the payout timeline. If completed as outlined, it will become one of the largest and fastest turnarounds in crypto repayment news history. It also offers a rare win for investors in a space frequently marred by uncertainty. Regulators may pursue reform as custodians initiate transfers, approved claims move forward, and the process sets a precedent for handling future bankrupt exchange updates worldwide.