FTX Set to Begin $5 Billion Stablecoin Payouts to Creditors

The long-awaited compensation process for creditors of bankrupt crypto exchange FTX is finally moving forward. Starting May 30, 2025, the estate managing the companys liquidation will begin distributing more than $5 billion in stablecoins to eligible claimants — marking a major milestone in the ongoing recovery process.

According to the latest announcement from the FTX bankruptcy estate, the initial wave of payments will be conducted using widely accepted stablecoins, including USDC and USDT. These assets are known for maintaining a 1:1 peg with the U.S. dollar and are favored for their relative price stability in the digital asset ecosystem.

A Strategic Move: Payouts in Stablecoins

Rather than relying on traditional fiat settlements, the choice to use stablecoins is designed to accelerate the delivery of funds and offer greater convenience to both retail and institutional creditors. Many of these creditors remain active in crypto space, and stablecoin payments can reduce delays and currency conversion issues.

This $5 billion payout represents the first phase of what may become a broader plan to restore partial funds to users impacted by FTXs collapse in late 2022. At that time, the exchange filed for bankruptcy amid a liquidity crisis that left billions in customer assets frozen.

Focus on Verified Claims

The current distribution targets creditors who have submitted and verified their claims through the official process. Further rounds of payouts may be scheduled depending on the outcome of ongoing asset recovery and litigation. So far, the estate has recovered a significant portion of assets through a combination of legal proceedings, sales of subsidiaries, and negotiations with third parties.

The Road Ahead

While the announcement is a positive step, full resolution remains distant. Several legal disputes are still pending, including efforts to recover assets held overseas and assess the claims of unsecured creditors. Nonetheless, this round of distributions signals meaningful progress for stakeholders who have waited more than two years for restitution.

As one of the largest crypto bankruptcies to date, the FTX case continues to shape industry expectations around risk management, asset protection, and legal accountability in the digital finance sector.