FTX Distributes $900 Million to Creditors in Fifth Repayment Round, Total Recoveries Reach $10 Billion

Jul 31, 2026

The FTX Recovery Trust has launched its fifth creditor distribution round, sending approximately $900 million to eligible claimants through Kraken, BitGo, and Payoneer. This payout pushes cumulative recoveries to an estimated $10 billion to $11 billion. While the milestone marks significant progress in the liquidation process, many creditors remain dissatisfied because claims are valued at November 2022 prices, causing them to miss out on subsequent cryptocurrency market gains.

FTX fifth creditor payout

▪The FTX Recovery Trust began its fifth creditor distribution on July 31, 2026, sending approximately $900 million to eligible claimants.
▪Eligible FTX creditors received their fifth-round payments through approved distribution service providers Kraken, BitGo, or Payoneer.
▪The fifth FTX distribution covered approved claims completed before the June 16, 2026, record date.
▪The FTX Recovery Trust made a second payment of approximately $18 million to preferred equity holders, raising total distributions for that group to $95 million.

FTX bankruptcy recovery process

▪The U.S. Bankruptcy Court approved the FTX liquidation plan in October 2024, allowing the estate to prioritize customer claims over government claims.
▪FTX customer claims were valued using cryptocurrency prices from November 2022, when the exchange filed for bankruptcy, excluding subsequent market gains.
▪Former customer advocate Sunil Kavuri criticized the FTX valuation method, arguing that nominal recovery percentages overstated repayments measured in cryptocurrency terms.

Total repayments milestone

▪The fifth distribution round pushed the cumulative repayments returned to FTX creditors to an estimated total of $10 billion to $11 billion.
▪FTX previously estimated up to $16.5 billion would be available for customer and creditor repayments under its cash-based recovery plan.

Asset liquidation progress

▪Chief Bankruptcy Judge Karen Owens allowed the FTX Recovery Trust to proceed with a $1.76 billion clawback claim against Binance and Changpeng Zhao.
▪Chief Bankruptcy Judge Karen Owens dismissed separate damages claims filed by the FTX Recovery Trust against Binance and Changpeng Zhao.

Market liquidity effects

▪Market analysts note that the FTX distributions could inject liquidity into the crypto ecosystem as some creditors may reinvest their recovered funds.
▪The exact impact of the FTX distributions on market liquidity remains uncertain due to scale and current market conditions.

Future distribution timeline

▪FTX stated it would publish subsequent record and payment dates after completing the July 2026 distribution cycle.
▪The FTX Recovery Trust has not announced a specific timeline for subsequent distributions following the July 31, 2026, payout.