FTX Starts $900M Creditor Payout on July 31, Fifth Distribution Since Collapse

FTX Trading Ltd. and the FTX Recovery Trust will send roughly $900 million to creditors starting July 31, 2026, the estate’s fifth major payout since the exchange’s 2022 collapse.

Eligible holders of allowed claims in the Convenience and Non-Convenience Classes who met the June 16 Record Date will receive funds. Bitgo, Kraken and Payoneer handle disbursement. Most recipients should see money within one to three business days, the estate said.

Cumulative distributions since early 2025 now approach $10 billion. That makes this one of the largest creditor recoveries in crypto bankruptcy history.

The fifth round arrives one day after the U.S. Senate unanimously passed a nonbinding resolution on July 16 rejecting federal clemency for convicted FTX founder Sam Bankman-Fried. The measure signals continued bipartisan resolve as recoveries climb past the $10 billion mark.

Payouts follow the waterfall priorities set in the confirmed Chapter 11 Plan. Claim values were calculated from prices at the November 2022 petition date, when Bitcoin traded near $16,000 – far below current levels. That gap has pushed recoveries above 100% for several creditor classes.

The Preferred Shareholder Remission Fund Trust will issue an $18 million payment on July 31 to eligible preferred equity holders. That brings total PSRFT payments to $95 million. Preferred holders must complete ownership certification, KYC checks and tax forms before onboarding with Bitgo or Payoneer.

Creditors seeking this or future payments must log into the FTX Customer Portal at claims.ftx.com, finish KYC verification, submit tax forms and onboard with a chosen provider. Once onboarded, customers direct payments irrevocably to that provider and should contact the provider directly with account questions, FTX said.

Transferred claims pay out only to the registered transferee after a 21-day notice period. Customers who used the FTX DM product receive separate communications about their claims.

FTX reiterated its phishing warning tied to this distribution. The company said it will never ask creditors to connect a wallet. Official updates come only through verified channels listed at support.ftx.com.

FTX’s collapse in November 2022 exposed an $8 billion shortfall after reporting revealed Alameda Research held large amounts of FTX’s FTT token. The exchange and more than 100 affiliates filed Chapter 11 that same month. Restructuring veteran John J. Ray III took over from Bankman-Fried.

Recoveries improved sharply as Bitcoin and Solana rebounded from 2022 lows, lifting the value of assets the estate could sell. Asset sales, clawback litigation and settlements added further value. FTI Consulting credited the estate’s process improvements with more than $7 billion in added recoveries.

The Chapter 11 Plan took effect January 3, 2025. The first distribution arrived in February at roughly $1.2 billion. That was followed by $5 billion in May 2025, $1.6 billion in September 2025 and $2.2 billion in March 2026.

Many Dotcom and U.S. customers now sit at or above 105% recovery before interest. That is a rare outcome for a bankruptcy of this scale. The estate has not announced a date for a sixth distribution, disputed claims resolution and final wind-down work continue.

Bankman-Fried is serving a 25-year sentence with appeals still pending.

Some creditors have criticized the pace of the process, pointing to KYC hurdles and delays for international claimants. FTX has continued flagging phishing attempts tied to each distribution round. The company reminds customers that legitimate updates never require a wallet connection request.

The case has become a reference point for how bankruptcy courts handle large-scale crypto failures. The estate’s asset tracing and creditor-first structure has drawn attention from regulators evaluating custody rules for exchanges.