FTX to Distribute $5B in Stablecoins to Creditors
FTX will start paying over $5 billion in stablecoins to its creditors beginning May 30, 2025.
- FTX will begin $5B repayments to creditors on May 30.
- Payments will be made in stablecoins like USDC and USDT.
- The move is part of FTX’s ongoing bankruptcy proceedings.
After a long legal and financial battle, bankrupt crypto exchange FTX has announced that it will start distributing over $5 billion in stablecoins to its creditors starting May 30, 2025. This development marks one of the most significant steps in FTX’s bankruptcy process, offering some relief to those affected by the platform’s collapse in late 2022.
The repayments will be made in major stablecoins such as USDC and USDT, which are widely used in the crypto market for their dollar-pegged stability. These distributions come after months of courtroom proceedings, asset recovery, and financial restructuring by the estate managing FTX’s liquidation.
Stablecoin Payout Marks a Major Milestone
The planned $5 billion payout is a part of the exchange’s efforts to return customer funds lost during the fallout. According to the bankruptcy plan, this is the first phase of what could be a series of payments aimed at restoring some trust and liquidity to former FTX users and institutional creditors.
Notably, the distribution will be made in stablecoins instead of fiat currency. This approach simplifies logistics and ensures faster delivery to creditors, especially those still operating in the crypto space.
FTX’s estate has already recovered a significant portion of the assets, and this initial distribution will target creditors who have already filed validated claims. More rounds of payouts may follow as additional assets are recovered or liquidated.
What Comes Next for FTX Creditors?
While this $5 billion distribution is a major win for many affected users, the full recovery may take more time. Legal teams are still working through remaining claims, asset disputes, and international recovery efforts.
Still, the upcoming distribution signals progress in what has been a long and painful chapter for thousands of FTX users. The use of stablecoins ensures transparency and speed, allowing stakeholders to see clear value without exposure to crypto market volatility.
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