FTX plans to distribute over $5 billion in stablecoins to its creditors, marking the largest payout since its bankruptcy. This action could significantly influence liquidity in the cryptocurrency market.
Payout Overview
The FTX Exchange is set to initiate the distribution of over $5 billion among creditors in stablecoins on Friday, May 30. This payout follows an initial payment of $7 billion made in February 2025.
Creditor Classification and Recovery Rates
According to a report, the payout will be executed according to a court-approved Chapter 11 plan, featuring varying recovery rates for each creditor class. 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, will receive 61%. Class 7, consisting of claims of $50,000 or less, will receive full repayment plus 9% annual interest, resulting in a 120% recovery rate.
Market Impact and Altcoin Activity
The release of over $5 billion in stablecoins into the market could enhance liquidity and potentially trigger an altcoin rally. Ethereum is showing early signs of a recovery. Increased on-chain activity indicates renewed interest in decentralized finance and AI-related projects. Bitcoin is also nearing its all-time highs after eight consecutive positive weeks, although experts caution against possible temporary downturns in the market.
FTX’s payout symbolizes a significant step in its bankruptcy process, with many anticipating its impact on the cryptocurrency market. Future activity in decentralized finance and altcoins may hinge on the efficiency of the payouts to creditors.
