FTX will start its fifth creditor distribution on July 31, sending out $900 million to eligible claimants. That brings total repayments from the bankrupt exchange past $10 billion. Creditors who completed the required steps by June 16 will get their funds through BitGo, Kraken, or Payoneer within three business days.
Who gets what this round
The distribution covers two main groups: Convenience Class and Non-Convenience Class creditors. FTX.com and FTX US users in Class 5a will receive an additional 9% on top of previous payments, pushing their cumulative recovery to 105% of approved claims. General unsecured creditors and crypto loan claimants get an extra 3%, bringing them to 103%. Convenience-class creditors — those with smaller claims — will see a cumulative 120% of their approved claims. FTX is also releasing $18 million to eligible preferred shareholders from the Preferred Shareholder Remission Fund Trust, which now totals $95 million.
The crypto price gap
There's a catch. All claims were valued in U.S. dollars based on crypto prices from November 2022, when FTX filed for bankruptcy. Bitcoin was trading around $20,000 back then. It's now more than 200% higher. So even a 105% recovery on paper might still leave customers with less than the current value of the crypto they originally held. That math has been a sore point for many creditors throughout the process.
The long road from collapse
FTX imploded in late 2022 after it emerged that founder Sam Bankman-Fried had misallocated over $8 billion of customer funds. He was convicted in 2023 on seven counts of fraud and conspiracy. The Senate voted unanimously this year that SBF should not receive executive clemency or commutation. He remains in prison. The bankruptcy estate has been working through distributions ever since, with this fifth round marking a significant milestone — total repayments now exceed $10 billion.
The next distribution is set for July 31. Creditors who missed the June 16 deadline will have to wait for a future round.
