FTX to Distribute $900 Million in Fifth Bankruptcy Payout
Eligible creditors set to receive funds via BitGo, Kraken, or Payoneer, with cumulative recoveries exceeding original claim values for several classes.
FTX is set to distribute approximately $900 million to creditors on 31 July 2026, marking the fifth repayment round in its ongoing bankruptcy liquidation. This latest distribution extends a process that has returned nearly $10 billion to claimants since payouts commenced in 2025, keeping the estate on a regular schedule as remaining claims move through Chapter 11 proceedings.
The fifth distribution targets eligible Convenience and Non-Convenience claim holders who completed the necessary steps by the 16 June record date. Funds are expected to arrive via third-party providers BitGo, Kraken, or Payoneer within one to three business days. Eligible creditors were required to complete Know Your Customer checks, submit tax forms, and onboard with an approved distribution provider to qualify for the payment.
Cumulative recovery rates are projected to rise significantly for several creditor classes. Dotcom customer claims will receive an additional 9 per cent, lifting total recoveries to 105 per cent of their allowed value. U.S. customer claims will see a similar increase, rising by 5 per cent to also reach 105 per cent. General unsecured and digital asset loan claims will each receive a 3 per cent distribution, bringing their cumulative total to 103 per cent. Convenience claims will reach a cumulative recovery of 120 per cent.
In a separate allocation, $18 million will be distributed to eligible preferred equity holders on the same day. This payment brings the total disbursements from the Preferred Shareholder Remission Fund Trust to $95 million. The current round follows a substantial $2.2 billion distribution executed in March 2026.
FTX has reiterated warnings regarding phishing scams and imitation claims portals associated with the payout process. The company stated it will never ask customers to connect a crypto wallet to receive funds. While recovery percentages now exceed allowed claim values, the calculations remain tied to dollar-denominated prices established around FTX’s collapse in November 2022, meaning creditors are receiving more than the bankruptcy value but not the full upside from the subsequent crypto market recovery.
