FTX will distribute approximately $900 million to creditors beginning July 31, 2026, the fifth round of payouts since the exchange collapsed in November 2022. The FTX Recovery Trust announced Friday that holders of allowed claims who completed verification by the June 16 record date will receive funds through BitGo, Kraken, or Payoneer within one to three business days. A convenience class is a bankruptcy category that groups smaller claims, in FTX’s case those under $50,000, for faster and simpler repayment, and those claims will reach a cumulative 120% recovery in this round. Larger customer claims reach 105%. The payment adds to roughly $10 billion the estate has already returned, and it lands while bitcoin trades near $64,000, far above the November 2022 prices used to value creditor claims.
Key takeaways
- FTX’s fifth distribution of about $900 million starts July 31, 2026, paid through BitGo, Kraken, or Payoneer within one to three business days.
- Convenience claims reach a cumulative 120% recovery, dotcom and US customer claims reach 105%, and general unsecured and digital asset loan claims reach 103%.
- A separate $18 million payment goes to preferred equity holders, bringing that fund’s total payouts to $95 million.
- Claims are valued in dollars at November 2022 prices, so percentage recoveries understate what the same crypto holdings would be worth today.
How the fifth distribution breaks down
The fifth distribution follows the waterfall set out in FTX’s Chapter 11 plan, with smaller claims already made whole and larger classes still catching up. According to the official announcement, Class 5A dotcom customer claims receive an incremental 9% payment, bringing them to 105% cumulative recovery. Class 5B US customer claims receive 5%, also reaching 105%. General unsecured and digital asset loan claims each receive 3%, reaching 103%, while convenience claims sit at a cumulative 120%.
Only creditors who finished know-your-customer verification, tax forms, and onboarding with a distribution provider by the June 16, 2026 record date are included. Subsequent record and payment dates will be announced later, so creditors who missed the cutoff can still qualify for future rounds.
The round is smaller than its predecessor. FTX paid out $2.2 billion in its fourth distribution in March, and the estate has returned roughly $10 billion to creditors and other claimants since repayments began in early 2025, according to The Block.
Recovery percentages hide a bitcoin-sized gap
Every recovery percentage in the plan is measured against crypto prices from November 2022, not today’s market. Bitcoin traded near $17,000 when FTX filed for bankruptcy on November 11, 2022. It trades near $64,000 today, which means a creditor who held one bitcoin on the platform receives a cash payout worth a fraction of the coin’s current price, even at a 120% recovery rate.
That gap explains why headline recovery figures have drawn criticism from creditors who wanted repayment in kind rather than in dollars. The estate chose cash distributions based on petition-date values, a standard bankruptcy approach that became painful for claimants once crypto prices recovered. Creditors have absorbed the difference while the estate’s dollar obligations stayed fixed.
What comes next for FTX creditors
The estate still has business left to finish. Alongside the creditor payment, a second payment of $18 million goes to eligible preferred equity holders on July 31 from the Preferred Shareholder Remission Fund Trust, bringing that fund’s total to $95 million. Detailed class-by-class figures will be filed on the court docket shortly after the distribution date.
FTX also repeated its phishing warning. The estate says it will never ask users to connect crypto wallets, and creditors should only use the official claims portal at claims.ftx.com to complete verification for future rounds.
The payouts return cash to claimants at a moment when institutional money is flowing back into crypto, as Citadel Securities’ $400 million investment in Crypto.com showed this week. Court-controlled crypto has been on the move too, with the US government transferring $288 million in seized bitcoin to Coinbase earlier this month. Former CEO Sam Bankman-Fried remains in federal prison after losing his appeal in June, and the Senate adopted a resolution this week opposing clemency, according to Cointelegraph. For the people who lost funds in 2022, July 31 is the date that matters.
Frequently asked questions
Who gets paid in FTX’s fifth distribution?
Holders of allowed claims in the plan’s convenience and non-convenience classes who completed KYC verification, tax forms, and onboarding with BitGo, Kraken, or Payoneer by the June 16, 2026 record date. Funds should arrive within one to three business days of July 31.
Why do FTX creditors get more than 100% back?
Recoveries are calculated on dollar values frozen in November 2022, when crypto prices were near cycle lows. Interest and estate asset sales push nominal payouts above 100%, but creditors who held bitcoin still receive far less than those coins would be worth at today’s prices.
What should creditors do before the next round?
Complete KYC verification, submit tax forms, and onboard with a distribution service provider through the official portal at claims.ftx.com before the next record date. FTX warns of phishing sites and says it will never ask users to connect crypto wallets.
