- In its 5th payout, FTX has announced that it will distribute around $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 in FTX have now soared above $10 billion, with many creditors recovering 100% or more of their claims.
On July 17, FTX Recovery Trust and FTX Trading Ltd. announced their 5th major distribution to creditors, which is scheduled to begin on July 31, 2026.
This round is expected to release approximately $900 million to eligible holders of allowed claims. This is one of the largest bankruptcy recoveries in crypto history.
The record date for this distribution is June 16, 2026. Payments will go to holders of allowed FTX claims and interests who have completed all pre-distribution requirements, including KYC verification, tax documentation, and onboarding with approved providers. Preferred equity holders will also receive payments on the same date under the same record cutoff.
Next FTX Creditor Payment of $900 Million on July 31
According to the official press release, the distribution will be handled by FTX’s designated service providers, including BitGo, Kraken, and Payoneer. Funds are sent in USD, after which recipients can choose withdrawal or conversion options where available. Only claims fully allowed and processed by the record date, with any objection periods cleared, will qualify.
FTX has also filed an amended notice to reduce its disputed claims reserve by about $600 million, from $2.4 billion to $1.8 billion. If approved by the court, this adjustment will free up additional cash for the July distribution and future payouts. Additionally, holders of Allowed NFT Customer Entitlement Claims can begin the NFT distribution process starting June 30, 2026.
The announcement of the 5th round comes after the completion of the 4th round in March 2026.
- In early 2025, the company distributed approximately $1.2 billion in the first round.
- In the second round, the trust allocated $5 billion in May 2025.
- During the third round, the company distributed around $1.7 billion in September 2025.
- The fourth round distributed $2.2 billion in March 2026.
Cumulative payouts before this 5th distribution have approached or exceeded $10 billion. Many creditor classes have already reached or surpassed 100% recovery, with smaller “Convenience Class” claims, which often receive up to 120%, including interest adjustments.
“Customers should be aware that by onboarding with a Distribution Service Provider, they have irrevocably elected to forego their right to receive cash distributions from FTX and have instead directed FTX to pay, directly to such Distribution Service Provider, any distributions to which they otherwise would be entitled to under the Plan. If customers have any questions related to the availability of the funds in their account with their selected Distribution Service Provider, they should contact customer support at their Distribution Service Provider directly,” stated in the press release.
FTX Collapse: An Incident That Shook the Entire Crypto Sector in 2022
The announcement comes around 4 years after FTX’s bizarre collapse in November 2022. The cryptocurrency exchange was once valued at $32 billion. After facing a massive shortfall in users’ funds, FTX filed for Chapter 11 bankruptcy. Without any consent from users, FTX has misused customers’ funds through loans to Alameda Research, its sister trading company. At the time of filing, the exchange was holding a small fraction of customer crypto assets. For example, it was just holding 0.1% of Bitcoin.
The FTX collapse triggered panic in the entire crypto market, which created the biggest bear run in the crypto market. As there were many creditors who suffered losses in this incident, the FTC incident has also attracted regulatory scrutiny.
FTX founder Sam Bankman-Fried was convicted of fraud and conspiracy charges, and he is currently serving a sentence of 25 years in federal prison. The bankruptcy involved assets across the world, litigation, asset sales, and recoveries from ventures, such as stakes like Robinhood.
Under new leadership by John J. Ray III, the estate has recovered between $14.5 billion and $16 billion through careful asset management and favorable conditions. The confirmed Chapter 11 plan is working on prioritizing customer recoveries, along with full repayment plus interest for many classes.
Many international customers are nearing full recovery, while U.S. customers and other classes have already hit 100%. The estate’s ability to deliver above 100% for smaller claims is showing strong asset performance during the collapse of FTX.
In March, Sam Bankman-Fried (SBF) stated that his exchange always had the money to pay customers and challenged the fraud narrative that has kept him behind bars.
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