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FTX Set for $5 Billion Stablecoin Creditor Payment

 
Vignesh Karunanidhi
Written By 
Vignesh Karunanidhi
 
Harsh Chauhan
Edited by 
Harsh Chauhan
May 29, 2025
FTX Set for $5 Billion Stablecoin Creditor Payment This Week
FTX
  • FTX will distribute over $5 billion in stablecoins on May 30.
  • Recovery rates vary by creditor class under FTX’s Chapter 11 plan.
  • The payout may boost crypto liquidity and trigger a market rally.

FTX plans to release more than $5 billion in stablecoins to creditors on May 30, marking its second major payout since bankruptcy. This payment targets users with balances exceeding $50,000. It follows an earlier payout of $7 billion made in February 2025. Together, these repayments total over $12 billion, the largest recovery in crypto bankruptcy history.

The payout accounts for nearly 2% of all stablecoins currently circulating. Market analysts expect this influx to boost liquidity across the crypto sector. Many anticipate that these funds will flow into Bitcoin and various altcoins, potentially stimulating renewed interest in decentralized finance and AI-related tokens.

Varied Recovery Rates for Different Creditor Classes

A summary shared on X by Crypto Rand reveals the payout follows a court-approved Chapter 11 plan. Different creditor classes will receive varying recovery rates. Class 5A, covering Dotcom Customer Entitlement Claims, will receive 72%. Class 5B, which includes U.S. Customer Entitlement Claims, will recover 54%. Classes 6A and 6B, which include unsecured and loan claims, will receive 61% each. Class 7, for Convenience Claims, is set to receive 120%.

The distribution will occur via trusted platforms like BitGo and Kraken, not directly from the FTX exchange. Although May 30 is the official payout date, completion may take several business days.

Potential Effects on the Crypto Market

The $5 billion stablecoin distribution has created both optimism and caution in the crypto community. Some experts suggest this injection could trigger a market rally. Others warn about possible volatility due to the large fund movement. This payout represents a significant step in FTX’s long process to repay creditors and rebuild confidence among former users.

More than two years since FTX’s fall in 2022, this payment is a significant step forward. Investors who own substantial shares are soon due to receive payments. People in the market are curious to find out what this large infusion of money will do to crypto trading and liquidity within the next weeks.

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Vignesh Karunanidhi
Written by Vignesh Karunanidhi
Vignesh Karunanidhi is a journalist at CryptoNewsZ with a knack for making complex financial topics accessible and entertaining. He has written for several leading platforms in the crypto space, including Cryptopolitan, WatchGuru, and Airdrops.io. His articles in CryptoManiaks and The Coin Republic have shown his expertise in market analysis and innovation. His work has also been featured on BeInCrypto and Captain Altcoin, where he writes about the factors that affect crypto prices. Through his writing and strong social media presence, he has built a community of crypto enthusiasts who want to stay updated. As he is passionate about blockchain’s future, he continuously analyzes trends to provide valuable insights.