FTX to Distribute $900M to Creditors in Fifth Repayment Round on July 31

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• FTX will begin distributing approximately $900 million to eligible creditors on July 31, 2026, as part of its Chapter 11 bankruptcy recovery plan.
• The fifth payout will bring total creditor repayments close to $10 billion, with some claim classes recovering up to 120% of approved claims.
• Eligible creditors who completed KYC, tax verification, and onboarding by the June 16 record date will receive payments via BitGo, Kraken, or Payoneer.
• The announcement follows recent developments involving former CEO Sam Bankman-Fried, including a U.S. Senate resolution opposing his pardon and reports of plans for a future crypto project.

Bankrupt cryptocurrency exchange FTX has announced its fifth round of creditor repayments, with approximately $900 million set to be distributed beginning on July 31, 2026. The payments are part of the company’s ongoing Chapter 11 bankruptcy proceedings and will be made to eligible creditors who completed all required pre-distribution steps before the June 16 record date.

According to FTX Recovery Trust, eligible claim holders can expect to receive their funds within one to three business days through distribution providers BitGo, Kraken, or Payoneer. The latest payout marks another milestone in one of the largest bankruptcy recoveries in the cryptocurrency industry.

Eligible Creditors to Receive Payments

The fifth distribution covers both Convenience and Non-Convenience claim holders with approved claims under FTX’s reorganization plan. Creditors were required to complete Know Your Customer (KYC) verification, submit tax documentation, select a distribution provider, and finish onboarding before the June 16 record date to qualify for this payment round.

FTX stated that Convenience Claims, generally valued below $50,000, will reach a cumulative recovery of 120% after this distribution. Meanwhile, FTX.com Customer Entitlement Claims and FTX US Customer Entitlement Claims will each reach cumulative recoveries of 105%, while General Unsecured Claims and Digital Asset Loan Claims will recover approximately 103%.

Nearly $10 Billion Returned to Creditors

With the latest $900 million distribution, FTX will have returned nearly $10 billion to creditors since repayments began in 2025. The bankruptcy estate has been able to generate substantial recoveries through asset sales, investment liquidations, and settlements, allowing many creditors to receive more than the face value of their approved claims.

However, reimbursements are based on the U.S. dollar value of customer assets at the time FTX filed for bankruptcy in November 2022 rather than current cryptocurrency prices. As a result, many customers whose digital assets have appreciated significantly since the collapse continue to receive less than the present market value of their original holdings.

Preferred Shareholders Also Receive Distribution

Alongside creditor repayments, the Preferred Shareholder Remission Fund Trust (PSRFT) will distribute approximately $18 million to eligible preferred shareholders on July 31. This will increase total PSRFT distributions to approximately $95 million. Eligible shareholders must complete ownership verification, KYC requirements, tax documentation, and onboarding with approved distribution partners to receive future payments.

Asset Recoveries Strengthened FTX’s Repayment Efforts

FTX’s ability to repay creditors has been supported by the recovery and sale of valuable assets accumulated before the exchange’s collapse. Among the most significant was its investment in AI startup Anthropic, where FTX initially invested around $500 million in 2021.

Before the sale process, the bankruptcy estate held an approximately 7.8% stake in the company. FTX subsequently sold its Anthropic holdings in 2024 through multiple transactions, generating roughly $1.3 billion in total proceeds that helped fund creditor recoveries.

Beyond Anthropic, FTX’s bankruptcy estate recovered billions of dollars through the liquidation of cryptocurrency holdings, venture capital investments, real estate and other assets, as well as settlements and other recovery efforts involving counterparties.

These recoveries have been central to the restructuring process and have helped support distributions to creditors under the court-approved plan. In certain cases, distributions can exceed the original allowed claim amount, depending on the applicable claim class and the plan’s provisions for interest and additional recoveries.

FTX Recovery Continues Amid Security Warnings and Legal Developments

As FTX moves forward with its fifth creditor distribution, the FTX Recovery Trust has urged claimants to remain vigilant against phishing emails and fraudulent websites impersonating the official claims process. The trust emphasized that it will never request users to connect cryptocurrency wallets to receive distributions and advised creditors to use only approved claims portals and payment partners.

The repayment announcement also comes as former FTX CEO Sam Bankman-Fried remains in the spotlight after the U.S. Senate recently passed a resolution opposing any presidential pardon for him. Earlier in June, Bankman-Fried also hinted at launching a new cryptocurrency project following his release from prison. Together, these developments underscore the continuing aftermath of FTX’s collapse, highlighting both the progress of creditor recoveries and the broader regulatory and legal consequences that continue to shape the cryptocurrency industry.