- FTX will distribute approximately $900 million to creditors beginning at the end of the month.
- The payment marks the fifth major distribution under the exchange’s Chapter 11 bankruptcy plan.
- Nearly $10 billion has now been returned to creditors since repayments began in 2025.
FTX is preparing another major round of repayments as the bankrupt cryptocurrency exchange continues unwinding one of the largest insolvencies in crypto history.
According to the company’s latest announcement, approximately $900 million will be distributed to eligible creditors beginning at the end of the month. The latest payment represents the fifth distribution under FTX’s Chapter 11 restructuring plan and brings total repayments to nearly $10 billion since the process began in 2025.
The ongoing distributions mark another significant milestone in the exchange’s efforts to compensate customers following its dramatic collapse in late 2022.
Fifth Distribution Under Bankruptcy Plan
Like previous repayment rounds, eligible creditors in both the Convenience and Non-Convenience classes are expected to receive their funds within three business days of distribution.
Payments will once again be processed through BitGo, Kraken, and Payoneer, which have been handling creditor distributions throughout the bankruptcy process.
The Convenience Class primarily consists of retail users and smaller claims, while the Non-Convenience Class covers larger and more complex creditor claims.
Creditors Have Received Billions
FTX has already completed several large repayment rounds over the past year.
Earlier this year, the bankruptcy estate distributed $2.2 billion to creditors, adding to previous payouts that have steadily reduced outstanding claims.
In total, nearly $10 billion has now been returned to customers and cther claimants, making the FTX restructuring one of the largest creditor recovery efforts ever seen in the cryptocurrency industry.
Repayment Approach Remains Controversial
Although many creditors are expected to receive between 118% and 142% of the value of their account balances based on prices at the time of FTX’s collapse, the repayment process has remained controversial.
Many customers have criticized the bankruptcy plan because distributions are based on the U.S. dollar value of holdings when the exchange failed in 2022 rather than returning the original cryptocurrencies themselves.
As Bitcoin and many other digital assets have appreciated significantly since then, some creditors argue they are missing out on substantial gains that would have been realized through in-kind repayments.
Legal Fallout Continues
The broader legal consequences surrounding FTX’s collapse are still unfolding.
Earlier this year, law firm Fenwick & West, which served as outside counsel for FTX US before the exchange’s collapse, agreed to pay $54 million to settle claims alleging it helped facilitate misconduct linked to former CEO Sam Bankman-Fried.
While the bankruptcy process is steadily returning funds to creditors, legal proceedings connected to one of crypto’s biggest failures continue years after the exchange entered bankruptcy.
