The post FTX to Distribute over $5B in Stablecoins to Creditors This Week appeared on BitcoinEthereumNews.com.

FTX’s May 30 payout will distribute $5 billion in stablecoins with varied recovery rates by creditor class. The influx of funds may boost crypto liquidity, sparking potential altcoin rallies and renewed DeFi and AI token interest. According to a report by crypto analyst Miles Deutscher on YouTube, FTX Exchange will distribute more than $5 billion to creditors in stablecoins on Friday, May 30, marking the second largest payout since its bankruptcy. This distribution follows an initial $7 billion payment in February 2025. Together, these payments bring total recovered funds to over $12 billion, representing the largest bankruptcy recovery in cryptocurrency history. FTX Distribution Breakdown by Creditor Class A creditor recovery summary posted on X by Crypto Rand has stated that the payout will follow a court-approved Chapter 11 plan with varied recovery rates depending on creditor classification. Class 5A, covering Dotcom Customer Entitlement Claims, will receive a 72% recovery. Class 5B, which includes U.S. Customer Entitlement Claims, will recover 54%.  Classes 6A and 6B, representing General Unsecured Claims and Digital Asset Loan Claims, respectively, each receive 61%. The Convenience Class 7, which consists of claims of $50,000 or less, will receive full repayment plus 9% annual interest, resulting in a 120% recovery rate. This class benefits from interest calculated since November 2022. Payout Facilitation and Timeline Kraken and BitGo will facilitate the payout, ensuring that funds reach creditors within one to three business days after May 30. These platforms were chosen due to their security measures and expertise in managing complex cryptocurrency repayments. FTX’s estate currently holds about $12.6 billion in assets. Advisors expect total recoveries to reach $16.5 billion as asset sales continue and legal actions against debtors proceed. The recovery plan hopes to give creditors between $14 billion and $16 billion after many years spent in litigation. Further…

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Filed under: News - @ May 29, 2025 3:24 pm