Key points
- In its fifth payment, FTX announced that it will distribute approximately $900 million to creditors on July 31, 2026.
- All eligible creditors who complete all requirements will receive funds via BitGo, Kraken or Payoneer.
- Due to the last four major distributions, total payouts at FTX have now risen to more than $10 billion, with many creditors recovering 100% or more of their claims.
On July 17, FTX Recovery Trust and FTX Trading Ltd. announced… About the fifth major distribution to creditors, which is scheduled to begin on July 31, 2026.
This round is expected to release approximately $900 million to allowed claims holders. This is one of the largest bankruptcy recoveries in the history of cryptocurrencies.
The record date for this distribution is June 16, 2026. Payments will be sent to holders of permitted FTX claims and interests who have completed all pre-distribution requirements, including KYC verification, tax documentation, and onboarding with approved service providers. Preferred stockholders will also receive payments on the same date and under the same record.
The next payment to FTX creditors of $900 million is on July 31
According to Official press releaseDistribution will be handled by FTX’s designated service providers, including BitGo, Kraken, and Payoneer. Funds are sent in US dollars, and recipients can then choose withdrawal or transfer options where available. Only fully authorized claims that have been processed by the filing date, with any objection periods cleared, will be eligible.
FTX also filed an amended notice to reduce its disputed claims reserve by approximately $600 million, from $2.4 billion to $1.8 billion. If the court approves this modification, it will provide additional funds for the July distribution and future payments. Additionally, holders of permitted NFT customer entitlement claims can begin the NFT distribution process starting June 30, 2026.
The announcement of the fifth round comes after the completion of the fourth round in March 2026.
- In early 2025, the company distributed approximately $1.2 billion in a Series A round.
- In the second round, the fund allocated $5 billion in May 2025.
- During the third round, the company distributed about $1.7 billion in September 2025.
- The fourth round distributed $2.2 billion in March 2026.
Cumulative payments prior to this fifth distribution have approached or exceeded $10 billion. Many classes of creditors have already reached or exceeded 100%, with smaller loans.“Convenience Class” claims, which often get up to 120%, including interest adjustments.
“Customers should understand that by joining with a DSP, they have irrevocably elected to waive their right to receive cash distributions from FTX and instead direct FTX to pay directly to such DSP any distributions they are entitled to receive under the Plan. If Customers have any questions regarding the availability of funds in their accounts with their chosen DSP, they should contact customer support at their DSP directly,” the press release said.
FTX Crash: An incident that shook the entire cryptocurrency sector in 2022
This announcement comes about 4 years after FTX’s bizarre collapse in November 2022 Cryptocurrency exchange It was once worth $32 billion. After facing a significant shortage of user funds, FTX filed for Chapter 11 bankruptcy. Without any consent from users, FTX misused customer funds through loans made to Alameda Research, its sister trading company. At the time of the application, the exchange held a small portion of clients’ cryptocurrency assets. For example, it only owned 0.1% of Bitcoin.
The collapse of FTX sparked panic in the entire cryptocurrency market, leading to the largest bearish wave in the cryptocurrency market. Since there were many creditors who suffered losses in this incident, the FTC incident also attracted regulatory scrutiny.
FTX founder, Sam Bankman-Fried, was convicted of fraud and conspiracy, and is currently serving a 25-year sentence in federal prison. The bankruptcy involved assets around the world, litigation, asset sales, and refunds from projects, such as stakes like Robinhood.
Under the new leadership of John J. Ray III, the company has recovered between $14.5 billion and $16 billion through careful asset management and favorable conditions. A confirmed Chapter 11 plan prioritizes customer recoveries, along with full repayment plus interest for many classes.
Many international customers are close to full recovery, while US and other customers have already reached 100%. The property’s ability to deliver in excess of 100% on small claims demonstrates strong asset performance during the FTX collapse.
In March, This was stated by Sam Bankman Fried (SBF). That his exchange always had the money to pay clients challenged the fraud narrative that kept him behind bars.
