FTX begins fifth creditor distribution worth $900 million

FTX will begin its fifth creditor distribution of approximately $900 million on July 31, 2026, bringing total repayments to nearly $10 billion since its 2022 collapse. In a rare outcome for a bankruptcy, many creditors will receive more than 100% of their claim's original value, with smaller accounts getting up to 120%. The surplus is due to interest, though claims are controversially valued at low November 2022 crypto prices.

Fifth creditor distribution details

• ▪FTX will begin its fifth creditor distribution of approximately $900 million on July 31, 2026
• ▪A previous distribution in March 2026 paid out $2.2 billion to creditors
• ▪The distribution is for holders of allowed claims in the FTX bankruptcy plan’s Convenience and Non-Convenience Classes
• ▪Eligible recipients are expected to receive funds within one to three business days via BitGo, Kraken, or Payoneer
• ▪FTX has warned creditors about potential scams, stating it will never ask them to connect a wallet for payments
• ▪With this payment, the FTX bankruptcy estate will have distributed nearly $10 billion to creditors since repayments began in 2025

Recovery exceeding 100% of claims

• ▪Creditors with claims under $50,000 who were not previously paid will receive a total of 120% of their claim value
• ▪All creditor claims are valued based on cryptocurrency prices at the time of FTX's collapse in November 2022
• ▪FTX's international customers will receive an additional 9%, bringing their total recovery to 105% of their claim's value
• ▪The repayments exceeding 100% are due to the addition of interest, calculated at a 9% annual rate from November 2022

Asset liquidation strategy

• ▪As part of its asset liquidation, the FTX estate sold its stake in the AI firm Anthropic for approximately $1.3 billion
• ▪The FTX estate, led by John Ray III, has gathered over $14 billion by liquidating assets

Preferred shareholder payments

• ▪Preferred shareholders will receive a second payment of $18 million on July 31, 2026, for a total of $95 million paid to date
• ▪It is highly unusual for shareholders to receive any payment in a bankruptcy case

Future distribution timeline

• ▪FTX has not announced a date or amount for a potential sixth distribution
• ▪Claims purchased on secondary markets must wait 21 days after the distribution date to qualify for payment