FTX Trading Ltd. and the FTX Recovery Trust have confirmed that approximately $900 million will be distributed to eligible creditors beginning on July 31, 2026. The payment marks the fifth major distribution since the collapsed cryptocurrency exchange entered bankruptcy following its dramatic failure in November 2022.
The latest round covers approved claims in both the Convenience and Non-Convenience Classes for creditors who satisfied all eligibility requirements before the June 16 record date. Payments will be processed through BitGo, Kraken, and Payoneer, with most recipients expected to receive their funds within one to three business days.
With this distribution, FTX's cumulative repayments are approaching $10 billion, making the case one of the largest creditor recovery efforts in the history of the cryptocurrency industry.
FTX announced it will begin its Fifth Distribution of ~$900 million on 7/31/26 to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements.
— FTX (@FTX_Official) July 17, 2026
FTX announced it will begin its Fifth Distribution of ~$900 million on 7/31/26 to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements.
— FTX (@FTX_Official) July 17, 2026
Several Creditor Groups Exceed 100% Recovery
The fifth distribution follows the repayment structure established under FTX's confirmed Chapter 11 bankruptcy plan. Multiple creditor classes will now receive cumulative recoveries exceeding the original value of their approved claims.
Dotcom Customer Entitlement Claims will receive an additional 9%, bringing total recoveries to 105%, while U.S. Customer Entitlement Claims receive another 5%, also reaching 105% overall.
Meanwhile, General Unsecured Claims and Digital Asset Loan Claims each receive an additional 3%, increasing cumulative recovery to 103%. Convenience Claims perform even better, reaching a cumulative 120% recovery.
These repayment percentages are based on asset values from November 2022, when Bitcoin traded near $16,000. Since cryptocurrency prices have recovered substantially, the bankruptcy estate has been able to generate significantly higher proceeds from asset sales than originally anticipated.
In addition, the Preferred Shareholder Remission Fund Trust will distribute another $18 million to eligible preferred shareholders, increasing total payments from the fund to $95 million.
Recovery Driven by Asset Sales and Market Rebound
FTX's recovery has been fueled by several factors, including the rebound of cryptocurrency markets and extensive asset recovery efforts. Following the exchange's collapse, restructuring specialists led by John J. Ray III worked to identify, recover, and liquidate assets across the bankrupt company's global operations.
The bankruptcy process benefited from the strong recovery of Bitcoin, Solana, and other digital assets, significantly increasing the value of holdings available for distribution. Additional recoveries came through asset sales, legal settlements, and clawback litigation, with restructuring advisor FTI Consulting previously crediting operational improvements for generating more than $7 billion in additional recoveries.
The Chapter 11 restructuring plan, which became effective in January 2025, enabled a structured repayment process that has already delivered approximately $1.2 billion, $5 billion, $1.6 billion, and $2.2 billion during previous distribution rounds.
Creditors Must Complete Verification
Eligible creditors must complete several administrative requirements before receiving payments. FTX continues to require Know Your Customer (KYC) verification, tax documentation, and onboarding through an approved distribution provider before funds can be released.
Transferred claims will only be paid to officially registered transferees after the required 21-day notice period, while customers who used FTX DM products will receive separate instructions regarding their claims.
The company has also renewed warnings about phishing scams targeting creditors during each distribution cycle. FTX emphasized that it will never request users to connect a cryptocurrency wallet, urging customers to rely exclusively on official communication channels for updates.
The latest distribution comes shortly after the U.S. Senate unanimously approved a nonbinding resolution rejecting federal clemency for former FTX CEO Sam Bankman-Fried, who is currently serving a 25-year prison sentence while pursuing appeals. Although a sixth creditor distribution has not yet been scheduled, the bankruptcy estate continues resolving disputed claims as one of the largest and most closely watched crypto insolvency cases moves toward its final stages.
