Bankrupt crypto exchange FTX is set to distribute more than $5 billion to its creditors on May 30. Eligible creditors needed to have an 'Allowed' claim by April 11, 2025, and complete KYC verification and tax forms. The distribution is among the largest single-day payouts in crypto bankruptcy history.

This payout will focus on claims over $50,000, with creditors having chosen Kraken or BitGo receiving funds within one to three business days after May 30. Earlier, FTX disbursed approximately $800 million to smaller creditors with claims under $50,000, and an additional $400 million round is scheduled for this group later this year.

The distributions are based on asset values at FTX’s bankruptcy filing in November 2022, not current market prices. Analysts anticipate this large-scale distribution may kickstart an altcoin season, as creditors might reinvest in the market.

FTX's bankruptcy estate holds between $14.7 billion and $16.5 billion, aiming for 98% of eligible creditors to recover at least 118% of their original claim in cash. However, failure to complete compliance by June 1 could forfeit claims. The payout is a significant step toward resolving the protracted bankruptcy case.

The announcement moved the FTT token up nearly 12%. Additionally, rumors suggest a potential Netflix series about FTX's collapse and Sam Bankman-Fried's life.