- FTX will distribute approximately $900 million to eligible creditors under its Chapter 11 restructuring plan beginning July 31.
- Payments will be processed through BitGo, Kraken, and Payoneer, with most eligible recipients expected to receive funds within one to three business days.
- Creditors who failed to meet the June 16 verification and onboarding requirements will not receive this round of distributions.
FTX is set to begin its fifth creditor distribution, paying approximately $900 million to eligible claim holders as the collapsed cryptocurrency exchange continues executing its Chapter 11 recovery plan.
According to the distribution notice, payments will begin on July 31, with eligible creditors expected to receive funds through BitGo, Kraken, or Payoneer within one to three business days.
The latest payout marks another major milestone in the ongoing effort to return funds to customers and creditors following FTX’s bankruptcy.
Eligibility Depends on June 16 Requirements
Not every approved creditor will receive payment in this distribution.
FTX said claim holders had to satisfy several requirements by the June 16 record date, including completing know-your-customer (KYC) verification, submitting valid tax documentation, onboarding with an approved distribution provider, and passing sanctions screening.
The company emphasized that having an allowed claim does not automatically qualify a creditor for immediate payment, as payment readiness is treated as a separate requirement.
Creditors who failed to complete any applicable steps by the deadline will not be included in the July 31 distribution.
Six-Month Window for Remaining Creditors
FTX also warned that creditors who have not completed provider onboarding now face an important deadline.
Beginning July 31, eligible claim holders have six months to successfully complete the onboarding process with their selected distribution provider.
If onboarding is not completed during that period, creditors may lose the right to receive distributions associated with their approved claims. Separate deadlines also apply for submitting valid tax forms under the bankruptcy plan.
Distribution Percentages Vary by Claim Type
The fifth distribution provides different payment percentages depending on the class of claim.
Dotcom Customer Entitlement Claims (Class 5A) will receive an additional 9%, bringing cumulative recoveries to approximately 105%.
U.S. Customer Entitlement Claims (Class 5B) will receive an additional 5%, also reaching roughly 105% in total recoveries.
Meanwhile, General Unsecured Claims (Class 6A) and Digital Asset Loan Claims (Class 6B) are scheduled to receive an additional 3%, increasing cumulative recoveries to approximately 103%.
Convenience Claims (Class 7) have reached a cumulative distribution of 120%, although FTX noted that actual percentages may vary slightly due to rounding.
Additional Recovery Programs Continue
Separate from the Chapter 11 creditor distributions, FTX’s Preferred Shareholder Remission Fund Trust is expected to distribute an additional $18 million to eligible preferred shareholders, increasing total payments under that program to $95 million.
FTX also confirmed that distributions administered through FTX Digital Markets in the Bahamas will proceed independently, with eligible non-convenience and catch-up payments also expected to begin around July 31.
As the recovery process continues, FTX remains focused on completing additional distributions while reminding creditors that meeting all verification and onboarding requirements remains essential for receiving future payments.
