The bankrupt cryptocurrency exchange FTX is planning to distribute over $5 billion to creditors on May 30, marking one of the most significant one-day payouts in the history of crypto bankruptcies.

To be eligible to receive the payout, creditors must have had an approved claim status by April 11, 2025, and have completed the necessary Know Your Customer (KYC) verification, submitted tax forms, and chosen a distribution provider.

The distribution will focus on claims exceeding $50,000, and creditors who met the compliance requirements by the deadline in April will also be included in this round of payouts. Those who selected Kraken or BitGo as their distribution service provider can expect to receive their funds within one to three business days after May 30.

FTX had previously distributed approximately $800 million to smaller creditors with claims of less than $50,000, and a further round of distributions totaling $400 million is anticipated for this group later in the year. The calculations for all distributions are based on the asset values at the time of FTX's bankruptcy filing in November 2022 and not the current market prices of cryptocurrencies.

There is speculation among analysts that such a substantial distribution could potentially trigger an altcoin season, as creditors may reinvest in the market to compensate for missed opportunities.

The bankruptcy estate of FTX has accumulated assets worth between $14.7 billion and $16.5 billion and estimates that 98% of eligible creditors will recover at least 118% of their original claim value in cash. Creditors who fail to meet the compliance requirements by June 1 may risk forfeiting their claims, underscoring the importance of verifying their status on the official claims portal.

The impending payout is a significant development in concluding the prolonged bankruptcy case, which has influenced trust in the crypto industry. Following the announcement, the FTT token price surged by almost 12%.

There are also rumors circulating about a potential Netflix series depicting the collapse of the exchange and the story of Sam Bankman-Fried.