FTX $900M payout Friday: 6-month clock for creditors to onboard

FTX begins its roughly $900 million fifth distribution under the Chapter 11 plan on Friday, July 31. Eligible creditors holding allowed Convenience and Non-Convenience claims who met the June 16 record date and all pre-distribution requirements should receive funds from BitGo or Kraken within one to three business days, according to FTX’s distribution notice. Payoneer is also handling payments.

The July 24 creditor FAQ draws a clear line between having an allowed claim and being ready to receive payment. The original claim holder had to satisfy the plan’s know-your-customer requirements by June 16. Once the claim was allowed, the holder also needed to submit a valid tax form, complete onboarding with a distribution provider and pass sanctions screening by that same date.

Missing any applicable June 16 eligibility or pre-distribution requirement means no July 31 payment. For an allowed claim holder who did not finish provider onboarding by the record date, July 31 opens a six-month window. If onboarding remains incomplete throughout that period, the holder may forfeit the right to receive distributions on that claim, the FAQ states. Tax forms follow a separate timeframe under Section 7.14 of the plan; failure to submit a valid tax form within that period can also forfeit the distribution.