USDFTX Sets Fifth Creditor Payout at $900 Million
July distribution lifts total repayments toward $10 billion
TL;DR
- FTX will begin its fifth bankruptcy distribution on July 31, paying approximately $900 million to eligible claimants.
- The payout follows a $2.2 billion March distribution and will bring total repayments to nearly $10 billion.
- Recovery rates differ by claim class and remain based on dollar values assigned around the November 2022 collapse.
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FTX will begin distributing approximately $900 million to eligible creditors on July 31, 2026, marking the fifth payout under its Chapter 11 reorganization plan and bringing total bankruptcy distributions to nearly $10 billion since repayments started in 2025.
The payment follows an approximately $2.2 billion distribution completed in March 2026. Eligible creditors are expected to receive funds within one to three business days after the new distribution begins, depending on processing through FTX’s approved providers: BitGo, Kraken or Payoneer.
Claimants must have qualified by the June 16, 2026, record date and completed required Know Your Customer checks, tax documentation and onboarding with an approved distribution provider. The payout covers eligible holders in the Convenience and Non-Convenience classes, including smaller retail customers, larger creditors and claimants with more complex cases.
Recovery Rates Vary by Claim Class
The fifth distribution will raise cumulative recoveries above allowed claim values for several creditor groups. Convenience claims will have the highest cumulative percentage, while FTX.com and FTX U.S. customer claims will each reach the same total recovery level after receiving different incremental payments.
The Convenience Class generally includes retail traders and smaller creditors, who account for most of FTX’s creditor base. The Non-Convenience Class covers larger or more complicated claims. Separate estimates have placed some retail recoveries at approximately 118% to 142% of the dollar value assigned to customer holdings when FTX collapsed, although actual treatment depends on the creditor’s class under the bankruptcy plan.
Those percentages do not mean customers are receiving the current market value of the crypto assets they previously held. Allowed claims are based on dollar-denominated values fixed around FTX’s collapse in November 2022, rather than later cryptocurrency prices, and repayments generally are not being made in kind.
As a result, creditors can receive more than the formal allowed value of their bankruptcy claims while still receiving less than the amount their original assets could have been worth after subsequent market appreciation. That valuation method has remained a source of dissatisfaction among former customers seeking recovery of assets held on the exchange.
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Preferred Shareholders Receive Separate Payment
Eligible preferred equity holders will receive a separate payment of approximately $18 million on the same distribution date. That payout will increase total distributions from the Preferred Shareholder Remission Fund Trust to approximately $95 million.
The estate’s repayment process remains ongoing despite the approaching $10 billion distribution total. Unresolved claims, administrative requirements and remaining Chapter 11 procedures mean the bankruptcy case has not been fully completed.
A separate legal recovery occurred in May 2026, when Fenwick & West, FTX US’s principal outside counsel before the exchange collapsed, agreed to pay $54 million to settle allegations that the Silicon Valley law firm helped enable Sam Bankman-Fried’s fraud.
FTX Warns Creditors About Scams
FTX also warned creditors about phishing emails, fraudulent communications and imitation claims portals targeting recipients during the distribution process. The company said it will “never ask them to connect a cryptocurrency wallet” to receive a bankruptcy payment.
Creditors were advised to use only approved claims and distribution channels as scammers continue attempting to exploit uncertainty surrounding claim status, payment schedules and provider onboarding.
FAQ
When will the fifth FTX distribution begin?
July 31, 2026.
Which providers will process payments?
BitGo, Kraken and Payoneer.
Why can recoveries exceed 100%?
Percentages apply to allowed bankruptcy claims valued around the 2022 collapse.
Will creditors receive their original crypto assets?
Repayments generally are not being made in kind.
This article has been refined and enhanced by ChatGPT.
