Key Highlights
- FTX will begin its fifth creditor distribution on July 31, 2026, totaling approximately $900 million.
- Eligible customer claims will exceed 105% cumulative recovery, while convenience claims reach 120%.
- Creditors who completed KYC, tax forms, and onboarding with BitGo, Kraken, or Payoneer by June 16 will receive funds within one to three business days.
Bankrupt crypto exchange FTX will distribute approximately $900 million to creditors on July 31, marking the fifth round of repayments under its Chapter 11 bankruptcy plan as the collapsed exchange continues returning funds to customers and investors.
According to an announcement released on Friday, creditors who completed all pre-distribution requirements, including identity verification, tax documentation, and onboarding with an approved distribution provider by the June 16 record date, are expected to receive their payments within one to three business days after July 31.
How creditors will receive payments
Under the fifth distribution, customer entitlement claims would continue to exceed their original allowed claim values.
FTX said:
- Class 5A Dotcom Customer Entitlement Claims will receive an additional 9%, bringing cumulative distributions to 105%.
- Class 5B U.S. Customer Entitlement Claims will receive an additional 5%, also reaching 105% cumulative recovery.
- General Unsecured Claims and Digital Asset Loan Claims each receive an additional 3%, bringing the cumulative recovery to 103%.
- Convenience Claims will reach 120% cumulative recovery.
The exchange noted that actual percentages may vary slightly because of rounding.
Payments routed through distribution partners
Eligible creditors will receive funds through the distribution provider they selected during the bankruptcy claims process. FTX currently supports BitGo, Kraken, and Payoneer. The company reminded customers that choosing a distribution provider constitutes an irrevocable election directing FTX to transfer distributions directly to that provider instead of making direct cash payments.
Creditors who have not yet completed Know Your Customer (KYC) verification, submitted tax forms, or onboarded with a distribution provider will remain ineligible until those requirements are met before future record dates.
Preferred shareholders get another payout
Alongside creditor repayments, FTX also announced a second payment for eligible preferred equity holders through its Preferred Shareholder Remission Fund Trust (PSRFT). Approximately $18 million will be distributed on July 31, increasing total preferred shareholder payments to $95 million.
Eligible shareholders must complete ownership verification, KYC, tax documentation, and onboarding with either BitGo or Payoneer before future payment dates.
Recovery process continues after $2.2 billion payout
The fifth distribution follows several earlier repayment rounds that have steadily returned billions of dollars to creditors.
Earlier this year, FTX distributed approximately $2.2 billion during its fourth payout round, while subsequent court filings proposed further reductions to disputed claims reserves to accelerate future distributions. Since the Chapter 11 plan became effective, the estate has continued to liquidate assets, resolve claims, and recover funds through litigation and asset sales.
Political attention around FTX remains
The latest repayment comes just days after the U.S. Senate unanimously adopted Senate Resolution 772, expressing bipartisan opposition to any potential presidential pardon for convicted FTX founder Sam Bankman-Fried.
Although the resolution is non-binding, it underscored lawmakers’ view that executive clemency would undermine accountability following one of the largest financial fraud cases in crypto history.
With another $900 million now scheduled for distribution, the bankruptcy process continues shifting attention away from criminal proceedings and toward returning funds to victims as FTX moves closer to completing one of the most closely watched restructurings in the digital asset industry.
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