FTX Begins $5 Billion Repayment to Creditors Starting May 30

FTX Starts Second Round of Creditor Repayments Today

The second major payback wave for FTX begins today, May 30. More than $5 billion in stablecoins would be returned to creditors who suffered losses when the exchange fell in November 2022. This follows the first May 15 notice. At the time, FTX stated that the dividends will be paid out in one to three business days. The transaction procedure is being managed by BitGo and Kraken.

This reimbursement is a component of a bigger plan that was approved by the court. Creditors are divided into five "convenience classes" under the proposal. The payout terms vary each group. Eligible creditors will get between 54 and 120 percent of their claims in this second round. These sums are determined using the cryptocurrency values in effect at the time of FTX's bankruptcy filing.

Source: X

First Round of Payments Already Delivered

This is not the first time money has been given to creditors. February 2025 saw the first repayment. Approximately $1.2 billion was given back to users at that time. This round is considerably bigger. It is a significant step for the market and creditors alike, accounting for almost 2% of the entire stablecoin supply.

The larger cryptocurrency market may be impacted by this significant fund release. The majority of the stablecoins may not be cashed out, according to analyst Miles Deutscher. Alternatively, they might return to the cryptocurrency market. This movement could lead to price changes. The timing is interesting because Bitcoin is close to its previous high. If many users put the stablecoins back into crypto, there could be a ripple effect on other tokens as well.

Many in the market are keeping an eye on early data from BitGo and Kraken. These platforms will show how the funds are moving and where they are going. Traders are watching to see if this liquidity returns to crypto markets quickly. If it does, that might drive prices even higher or create short-term volatility.

Source: X

For many creditors, this second wave offers some financial relief. Some will finally receive a significant part of what they lost. Others may even get more than their original claim value, depending on the class they belong to. While full recovery is still uncertain for everyone, this round provides some progress after years of waiting.

More repayments are expected in the future. The full process is not yet over. As FTX continues to recover assets and go through court proceedings, there may be additional rounds of distributions. Each wave will likely bring more attention to the market, especially if the amounts are as large as this one.

Final Thoughts

The issue of more than $5 billion in stablecoins by FTX is a significant development. It impacts the whole cryptocurrency market in addition to creditors. Users who lost their money now have hope thanks to the action. It also raises concerns about how prices will be affected by this level of liquidity. Right now, everyone is watching to see how these funds behave and what it means for cryptocurrency's future.