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Home Crypto News Today Market Updates

FTX Begins Another $900M Creditor Repayment Round

FTX’s approximately $900 million fifth distribution on Friday, July 31, 2026, marks the latest milestone in its ongoing customer repayment process.

Sathish Kumar Kaliraj by Sathish Kumar Kaliraj
July 31, 2026
in Market Updates
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Photo by rupixen on Unsplash/Edited by Cryip

Photo by rupixen on Unsplash/Edited by Cryip

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FTX Trading Ltd. and the FTX Recovery Trust began distributing approximately $900 million to creditors on Friday, July 31, 2026, the fifth distribution under the exchange’s confirmed Chapter 11 Plan of Reorganization since the company’s 2022 collapse. The payment marks the latest milestone in FTX’s ongoing customer repayment process, which has now moved through five separate rounds over roughly a year and a half.

Who Qualifies for the July 31 Payment, and How It Arrives

The Fifth Distribution covers holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes who completed all pre-distribution requirements, including KYC verification, tax documentation, and onboarding with an approved payment processor, by the June 16, 2026 record date.

Eligible recipients are expected to receive funds through one of three Distribution Service Providers, BitGo, Kraken, or Payoneer, within one to three business days of July 31. A separate Second Preferred Payment of $18 million is also being made on July 31 to eligible Preferred Equity Holders, whose outreach process began in January 2026; that payment brings cumulative payments from the Preferred Shareholder Remission Fund Trust to $95 million.

Recovery Percentages for This Round’s Five Claim Classes

Under the Plan’s waterfall structure, Class 5A Dotcom customer claims receive an incremental 9% in this round, bringing their cumulative distribution to 105%. Class 5B U.S. customer claims receive 5%, also reaching 105% cumulative.

Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims each receive an incremental 3%, bringing their cumulative total to 103%. Class 7 Convenience Claims reach a cumulative distribution of 120%. FTX has noted that these percentages may shift slightly due to rounding, and that the exact dollar amounts distributed by class will be filed on the bankruptcy docket shortly after July 31.

Four Earlier Rounds Since the Plan Took Effect in 2025

The Fifth Distribution follows four earlier rounds since FTX’s Chapter 11 Plan took effect in January 2025, according to reporting on the case. The Fourth Distribution, in March 2026, moved approximately $2.2 billion. Taken together, cumulative distributions across all five rounds are estimated, according to reporting on the process rather than an FTX-published running total, to be approaching $10 billion, one of the larger creditor recoveries in a crypto bankruptcy to date.

FTX Creditor Distributions to Date
Round Date Amount
First February 2025 ≈$1.2 billion
Second May 2025 ≈$5 billion
Third September 2025 ≈$1.6–$1.7 billion
Fourth March 2026 ≈$2.2 billion
Fifth July 31, 2026 ≈$900 million


Figures for the first three rounds and the fourth-round comparison are reported elsewhere and not independently confirmed by us; the fourth-round total and today’s figure are drawn from FTX’s own announcements.

The Reserve Cut Behind This Round’s Cash, and What’s Still Unresolved

These distributions are part of FTX’s ongoing customer repayment process, which continues to reconcile and pay out claims stemming from the exchange’s 2022 collapse. Ahead of this round, FTX filed a notice with the bankruptcy court to reduce its disputed-claims reserve by $600 million, in order to free up additional cash for creditor distributions; that reduction was approved in mid-June 2026, according to legal-industry reporting on the docket.

Disputed-Claims Reserve, Before and After
Before After Change
$2.4 billion $1.8 billion −$600 million


FTX has not yet announced a date for a sixth distribution, and reconciliation of remaining disputed claims continues. The estate has also repeated its standing phishing warning: it says it will never ask a claimant to connect a crypto wallet. Creditors with questions about eligibility or onboarding can check status directly through the FTX Customer Portal.

Disclaimer: Cryip's content is strictly for educational and informational purposes and does not constitute financial, legal, or investment advice. Cryptocurrency involves significant risk, and readers assume full responsibility for their own financial decisions. Asset references are never endorsements.

To make complex crypto topics accessible to readers at all experience levels, our team uses AI tools strictly to refine language, correct grammar, and simplify terminology. AI is never used to draft facts, source information, or form conclusions. Every article is fact-checked and approved by a human editor before publication. Read our full AI Use & Content Policy.

Tags: Exchanges
Sathish Kumar Kaliraj

Sathish Kumar Kaliraj

Sathish Kumar Kaliraj is a crypto journalist and data analyst at Cryip, covering on-chain activity, market movements, and regulatory developments across the crypto industry. His reporting combines statistical analysis and blockchain data verification, drawing on certifications in data journalism, fact-checking (IFCN, Google News Initiative), and journalism fundamentals (NBC Universal Academy). His work has been cited by Coincu, Tech Times, and Bitcoinist.

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