FTX Unleashes $5 Billion in Stablecoins: A Tsunami of Crypto Liquidity Hits the Market!

Second Wave of Repayments Starts Today, May 30

Buckle up, crypto world! FTX just dropped a bombshell by releasing over $5 billion in stablecoins to its creditors, shaking up the market with roughly 2% of the total stablecoin supply. This isn't just a trickle; it's a flood of cash hitting the streets starting today, May 30.

From Bankruptcy to Bounty: FTX's Comeback Plan in Action

Get ready for round two of FTX's epic comeback story. After the exchange went down in flames back in November 2022, today marks the second major repayment wave to get users their lost funds back. No more waiting—the money's flowing out now, and it's happening fast!

Fast and Furious: The Distribution Details

FTX dropped the news on May 15, promising that the distributions would kick off on May 30 and wrap up in just one to three business days. BitGo and Kraken are the masterminds behind this swift operation, ensuring the cash lands in the right hands pronto.

Eligible creditors, listen up! You'll be seeing those funds from your chosen distribution service provider within 1 to 3 business days from May 30, 2025. No more delays, just straight-up cash coming your way.

Creditors' Payday: The Breakdown

FTX's court-approved reorganization plan splits creditors into five "convenience classes," and this second round is where the real action happens. Depending on the value of your claims at the time of FTX's bankruptcy, you could be walking away with between 54% and 120% of what you're owed. Sunil Kavuri, the FTX creditor advocate, spilled the beans on this juicy deal.

Here's the scoop on the distribution:

FTX Distribution: 30th May
$5bn to be distributed

Claims > $50k: 72% – intl
Claims > $50k: 54% – US
Claims =< $50k: 120%

From February's Tease to May's Tsunami

Remember the first round of payouts back in February? That was just a warm-up, delivering around $1.2 billion to creditors. But this second wave? It's massive, folks—representing about 2% of the total stablecoin supply. We're talking real money here!

The Market's Wild Card: Liquidity and Price Movements

Analyst Miles Deutscher is buzzing with excitement. He says this liquidity could rocket back into the market instead of being cashed out, setting the stage for some wild price swings. And with Bitcoin (BTC) flirting with its previous highs, this new liquidity could be the spark that lights the fire. All eyes are on BitGo and Kraken's early on-chain data to see how this cash tsunami disperses and shakes up prices.