FTX plans to pay $900 million to creditors when the fifth distribution begins on July 31.

Payments apply to eligible holders of accepted claims in Convenient and Non-Convenient Classes who meet requirements by the record date of June 16th. Bitgo, Kraken, and Payoneer process payments, and most recipients will see their funds within 1-3 business days.

Cumulative distributions since early 2025 are now close to $10 billion, making it one of the largest creditor recoveries. cryptocurrency history.

Handouts arrive after Senate vote

Round 5 begins a day after the U.S. Senate unanimously passed a resolution denying federal pardon to FTX founder Sam Bankman-Fried, who was convicted on July 16. The non-binding legislation signals continued bipartisan resolve as bankruptcy recoveries surpass $10 billion.

Analysis of payment by class

Distributions will follow the cascading priorities established in the finalized Chapter 11 plan.

• Class 5A Dotcom customer eligible claims will receive a 9% incremental distribution, increasing the cumulative recovery rate to 105%.
• Class 5B US customer eligible claims receive 5%, cumulative to 105%.
• Class 6A general unsecured claims and Class 6B digital asset loan claims each receive 3%, cumulatively reaching 103%.
• The seven types of convenience store claims reach a cumulative distribution of 120%.

This percentage is calculated by comparing the claim amount at the November 2022 petition date. Bitcoin It was trading near $16,000, well below its current price. This gap helped us achieve recovery rates of over 100% in several classes.

The Preferred Shareholder Remission Fund Trust also plans to pay $18 million to eligible preferred stock holders on July 31, bringing the total PSRFT payout to $95 million. First, holders must complete ownership verification, KYC verification and tax forms before signing up with Bitgo or Payoneer.

What Creditors Should Do

Creditors seeking this or future payments must log into the FTX customer portal at claim.ftx.com to complete KYC verification, submit tax forms and register with the provider of their choice. Once onboarded, customers irrevocably direct payments to that provider and should contact that provider directly with any account-related questions.

Transferred claims will only be paid to the registered transferee after the 21 day notice period. FTX customers who have used the FTX DM product will receive separate instructions regarding claims.

FTX reiterated its phishing warning regarding this distribution. The company said it will never ask creditors to link their wallets and official updates are only provided through verified channels listed on support.ftx.com.

Recovery Based on Market Timing and Litigation

FTX’s collapse in November 2022 revealed an $8 billion shortfall after Alameda Research reported that it was holding a large number of FTX FTT tokens, triggering a bank run. FTX and more than 100 of its affiliates filed Chapter 11 in the same month, and restructuring veteran John J. Ray III took over Bankman-Fried.

With Bitcoin, Solana and other cryptocurrency assets rebounding from their 2022 lows, the recovery has improved sharply as real estate has become more valuable as assets available for sale. Asset sales, repossession lawsuits and settlements have further driven valuations, and FTI Consulting estimates that real estate process improvements have resulted in more than $7 billion in additional recoveries.

The Chapter 11 plan became effective January 3, 2025, establishing a structured payment arrangement. The first distribution amounted to approximately $1.2 billion in February, followed by $5 billion in May 2025, $1.6 billion in September 2025, and $2.2 billion in March 2026.

Next steps for creditors

Many of Dotcom and its U.S. customers currently enjoy recovery rates of more than 105% before interest, a rare result for a bankruptcy of this scale. The estate has not announced a date for the sixth distribution, but work on resolving and finalizing disputed claims continues.

Bankman-Fried was sentenced to 25 years in prison, with her appeal still pending.

Some creditors have criticized the speed of the process, pointing to KYC hurdles and delays for international claimants. FTX has consistently reported phishing attempts associated with each distribution round, reminding customers that legitimate updates do not require a wallet connection request.

The case has also become a benchmark for how bankruptcy courts handle large-scale cryptocurrency failures, and the estate’s asset tracking and creditor priority structure has caught the attention of regulators evaluating custody rules for exchanges.