FTX to distribute $900M in fifth creditor payout
FTX is distributing another $900 million to creditors, pushing cumulative recoveries for some classes above 100% of their allowed claims, though payouts remain tied to November 2022 valuations.
FTX will distribute approximately $900 million to eligible creditors on July 31, marking the fifth round of payouts since the collapsed cryptocurrency exchange began returning funds in 2025. This latest tranche brings total distributions from the bankruptcy estate to nearly $10 billion, demonstrating the scale of asset recovery managed by the restructuring team.
The distribution targets Convenience and Non-Convenience claim holders who met the June 16 record date. The payouts lift cumulative recoveries significantly across several creditor classes. Convenience claims will reach a cumulative recovery of 120% of their allowed value. Both Dotcom and U.S. customer claims will hit 105%, while general unsecured and digital asset loan claims will reach 103%.
Funds are expected to arrive within one to three business days through approved distribution providers BitGo (NYSE: $BTGO), Kraken, or Payoneer. To receive the transfers, eligible creditors must have already completed Know Your Customer checks, submitted necessary tax forms, and onboarded with a chosen provider. Alongside the payout, FTX reiterated warnings about ongoing phishing scams, stressing that the estate will never ask users to connect a crypto wallet.
For investors, the headline recovery rates exceeding 100% represent a notably positive outcome in the context of Chapter 11 proceedings. However, the actual financial implications for former customers are more nuanced. The payout calculations are strictly tied to dollar-denominated prices established around the time of FTX's November 2022 collapse. Consequently, while creditors are receiving more than the formal bankruptcy value of their claims, they are missing out on the substantial upside generated by the broader digital asset market's subsequent recovery.
This structural gap between bankruptcy valuation and current market prices continues to shape how former customers perceive the final resolution of the case. The July 31 payout follows a $2.2 billion distribution in March and maintains a regular payout schedule as the estate moves closer to concluding its Chapter 11 proceedings.
Alongside the main creditor distributions, a separate $18 million payment will be made to eligible preferred equity holders on July 31. This brings total payouts from the Preferred Shareholder Remission Fund Trust to $95 million, clearing another category of claims as the FTX wind-down enters its final phases.
