The bankrupt cryptocurrency exchange FTX will begin distributing approximately $900 million to eligible creditors today on July 31, 2026, marking the fifth major repayment round under its Chapter 11 reorganization plan.
The FTX Recovery Trust confirmed the payout for holders of allowed claims in the Convenience and Non-Convenience Classes who completed required pre-distribution steps by the June 17 record date. Funds are expected to reach recipients within one to three business days through distribution partners BitGo, Kraken, or Payoneer.
This latest tranche pushes the estate’s cumulative distributions to nearly $10 billion since repayments began in early 2025. Many creditors will see their total recoveries exceed 100% of allowed claim values. Dotcom (international) customer claims receive an additional 9%, reaching 105% cumulatively.
In the July 17 release, the estate said that U.S. customer claims add 5% for the same 105%. General unsecured claims and digital asset loan claims each gain 3%, bringing them to 103%. Smaller Convenience Class accounts stand at a cumulative 120% in some cases. A separate $18 million payment is also going to eligible preferred equity holders.
The strong recovery rates stem from the way claims were valued at the time of FTX’s collapse combined with later asset appreciation, successful clawbacks, settlements, and rising cryptocurrency prices. Claims were generally fixed using November 2022 market values, when Bitcoin and other assets traded far lower than today.
From Collapse to Court-Approved Recovery Plan
FTX, once one of the world’s largest crypto exchanges, filed for Chapter 11 bankruptcy in the U.S. District of Delaware in November 2022 after a liquidity crisis and revelations of widespread misuse of customer funds.
Founder and former CEO Sam Bankman-Fried (SBF) was later convicted on multiple fraud and conspiracy charges related to the failure. The company and its affiliates, including Alameda Research, faced massive shortfalls after customer deposits were improperly used.
Under new leadership and the FTX Recovery Trust, the estate focused on maximizing value for creditors. A consensus-based Plan of Reorganization gained overwhelming creditor support and received court confirmation. The plan became effective in early 2025, enabling structured distributions. Initial payments to smaller Convenience Class creditors began in February 2025. Subsequent larger rounds followed: more than $5 billion in the second distribution in May 2025, approximately $1.6 billion in September 2025, and about $2.2 billion in March 2026.
Throughout the process, the estate recovered assets through litigation, settlements with third parties, and careful management of remaining holdings. These efforts, combined with the broader crypto market recovery, allowed many creditors to receive more than the dollar value of their original claims as fixed at the bankruptcy filing date.
Creditors’ payments have been made in cash rather than the original cryptocurrencies, a point of ongoing discussion among some claimants who note that crypto prices have risen substantially since 2022.
Read: SBF Says FTX Had $25B in Assets: “It Was Never Insolvent”
Ongoing Wind-Down and Creditor Considerations
The fifth distribution is smaller than earlier rounds, reflecting the progressive nature of the recovery and the fact that most major asset realizations have already occurred. Officials have repeatedly cautioned creditors about phishing attempts and scam websites that impersonate FTX or the customer portal. Eligible recipients must have completed KYC, tax, and onboarding requirements with their chosen distribution provider.
Bankruptcy court documents and official announcements remain available through the court docket and the FTX Recovery Trust’s communications. Preferred equity holders and certain other classes continue to receive separate, smaller payments under the plan’s priority waterfall.
Nearly four years after the 2022 collapse, the FTX case stands out in crypto history for the scale of funds returned to creditors. While many have recovered more than 100% of their allowed claims in dollar terms, the process has been lengthy, and some participants continue to express frustration over the opportunity cost of locked capital during a period of strong market gains.
The current $900 million distribution represents another significant step toward concluding one of the largest and most closely watched bankruptcies in the digital asset sector. Further residual distributions may still occur as remaining disputed claims and assets are resolved.
Also read: Strategy (MSTR) Reports $8.2B Q2 Loss as Bitcoin Drops Below Cost Basis
