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FTX Schedules Fifth $900 Million Creditor Payout on July 31
18 July, 2026 / News / AI / 792 reads / Tags: ftx, convenience, claims, cumulative, fifth
Bankrupt exchange FTX plans to distribute approximately $900 million to eligible creditors starting July 31, 2026, bringing total repayments near $10 billion
Details of the Fifth Distribution
The FTX Recovery Trust and related entities announced the fifth round of creditor distributions under the Chapter 11 reorganization plan. This payment targets holders of allowed claims in the Convenience and Non-Convenience classes who met pre-distribution requirements by the June 16 record date.
Eligible recipients should receive funds within one to three business days via approved service providers including BitGo, Kraken, or Payoneer. The distribution covers a range of claim types with specified incremental and cumulative recovery rates.
- Class 5A (Dotcom customer claims): additional 9%, cumulative 105%
- Class 5B (US customer claims): additional 5%, cumulative 105%
- Classes 6A and 6B (general unsecured and digital asset loan claims): additional 3% each, cumulative 103%
- Class 7 (Convenience claims): cumulative 120%
FTX also confirmed a second payment of $18 million to eligible preferred equity holders from the Preferred Shareholder Remission Fund Trust, raising total payments from that fund to $95 million. Individual holders will use Kraken, while institutional recipients will use BitGo.
Cumulative Progress in Repayments
Since the start of distributions in 2025, the bankruptcy estate has returned nearly $10 billion to creditors and claimants. Previous rounds included a $2.2 billion payment in March 2026 and other tranches that pushed announced amounts across later rounds past $9.7 billion.
The estate continues court-supervised proceedings, with omnibus hearings scheduled for July 23 and August 16. Future record and payment dates for additional distributions will be announced later.
FTX filed for bankruptcy in November 2022 following a liquidity crisis. Under the approved plan, the estate has focused on asset recovery and structured repayments to maximize returns for claimants.
Legal and Related Developments
In May 2026, law firm Fenwick & West agreed to pay $54 million to settle claims related to its prior role with FTX US. This added to the funds available for distributions.
Former FTX CEO Sam Bankman-Fried remains in prison serving a 25-year sentence following conviction on fraud and related charges. His appeal was denied, and efforts toward clemency have faced opposition, including a unanimous Senate resolution.
The estate has warned claimants about potential scams and urged verification through official channels only. No requests for seed phrases or additional fees will come from legitimate parties.
| Distribution Aspect | Details |
|---|---|
| Amount | ~ $900 million |
| Start Date | July 31, 2026 |
| Payment Window | 1-3 business days via providers |
| Total Distributed to Date | Nearly $10 billion |
Disclaimer
This article was generated by AI using information from multiple industry sources. It has not been reviewed or verified by a human editor and may contain inaccuracies, omissions, or misinformation. Readers are encouraged to independently verify any information before making decisions based on its content.Associated articles
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