FTX Creditors Set to Receive $900M Payout on July 31

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This article was first published on The Bit Journal.

Nearly four years after FTX collapsed, the bankrupt crypto exchange is preparing for another phase of its FTX creditor payout process.

The FTX Recovery Trust is set to begin distributing approximately $900 million to eligible creditors on July 31 in what would be its fifth bankruptcy payout since repayments started in 2025.

Eligible claimants who completed identity verification, tax documentation and onboarding with BitGo, Kraken or Payoneer by the June 16 record date are expected to receive funds within one to three business days.

Looking at how much has been returned to customers and creditors, the payment pushes cumulative announced distributions to nearly $10 billion.

However, while many creditors are finally receiving money, thousands in restricted jurisdictions remain unable to access distributions, with some now facing a deadline that could ultimately jeopardize their claims.

FTX Creditor Payout Effort Enters a New Phase

The July 31 distribution covers allowed claims in Classes 5A, 5B, 6A, 6B and 7, representing both customer entitlement claims and general unsecured creditors under FTX’s court-approved Chapter 11 restructuring plan.

Depending on the claim class, cumulative recoveries now reach 103% to 120% of the allowed claim value. Those figures are recovery percentages calculated under the bankruptcy plan not today’s cryptocurrency prices.

Claim Class	Cumulative Recovery
Class 5A (Dotcom Customers)	105%
Class 5B (U.S. Customers)	105%
Classes 6A & 6B	103%
Class 7 (Convenience Claims)	120%

Those percentages have created confusion among some former customers who expected repayments to show current crypto prices. The bankruptcy court approved valuing digital asset claims using asset prices from the time FTX entered bankruptcy in November 2022.

The additional percentage are the interest and recoveries under the restructuring plan, not gains from Bitcoin, Ethereum or other cryptocurrencies appreciating since then.

A $900 Million Payment Does Not Mean Every Creditor Gets Paid

One of the biggest misconceptions surrounding the latest FTX recovery payout distribution is that every approved creditor will receive funds on July 31.

That is not the case. FTX says only creditors who satisfied all pre-distribution requirements as of June 16 qualify for this round. Besides having an allowed claim, users needed to complete Know Your Customer (KYC) checks, submit tax forms, clear sanctions screening and successfully onboard with one of the three approved distribution partners.

Creditors who missed any of those steps, even if their claim is otherwise valid, must wait for a future distribution.

Another important restriction affects geography. Residents in 45 jurisdictions, including China, Russia, Bangladesh, Egypt, Morocco, Saudi Arabia and several sanctioned countries, still cannot access an approved distribution provider. FTX says the list may change as new providers become available, but for now those claims remain deferred rather than denied.

The Six-Month Deadline Could Be More Consequential Than July 31

Under FTX’s distribution policy, eligible creditors who fail to complete onboarding with an approved provider within six months after July 31 could forfeit their right to receive future distributions on that claim.

That policy supports the growing emphasis bankruptcy administrators have placed on closing outstanding claims efficiently. Since repayments began, FTX has gradually reduced disputed claims while expanding distributions to additional creditor groups.

Earlier this year, the estate also amended its disputed claims reserve and outlined future record dates as it moved closer to winding down remaining obligations.

What the Fifth Distribution Says About Crypto’s Largest Bankruptcy

When FTX collapsed in November 2022, many customers feared they would recover little or nothing from the exchange. Bankruptcy experts initially warned that years of litigation and asset recovery would determine how much could eventually be returned.

Since then, aggressive asset sales, investments recovered from venture holdings, legal settlements and disciplined claims administration have changed expectations. The estate has now announced almost $10 billion in distributions across multiple repayment rounds, making the FTX case one of the largest recoveries in crypto history.

Even so, the process continues to divide opinion. While many creditors welcome recoveries exceeding 100% of allowed claim values, others argue that repayments based on 2022 crypto prices leave them worse off after Bitcoin and several other digital assets reached much higher valuations during the bankruptcy proceedings. This is likely to remain part of FTX’s legacy long after the final distributions are complete.

Conclusion

The latest FTX creditor payout is another step toward resolving one of the cryptocurrency industry’s biggest failures.

Approximately $900 million is scheduled for distribution on July 31, lifting cumulative announced repayments close to $10 billion.

Yet the recovery remains incomplete. Creditors who missed earlier compliance requirements or who remain unable to access approved payment providers still face uncertainty, while the six-month onboarding deadline also adds urgency for eligible claimants hoping to preserve their right to future distributions.

Glossary

Chapter 11: A U.S. bankruptcy process that allows a company to reorganize while repaying creditors.

Allowed Claim: A bankruptcy claim approved by the court for payment.

KYC: Know Your Customer verification used to confirm a customer’s identity.

Distribution Provider: A third-party platform: BitGo, Kraken or Payoneer; authorized to deliver FTX repayments.

Record Date: The deadline by which creditors must satisfy eligibility requirements for a specific distribution.

Frequently Asked Questions About FTX Creditor Payout

When will the latest FTX creditor payouts be distributed?

Eligible creditors should begin receiving funds within one to three business days starting July 31, 2026.

Why are some creditors still unable to receive payments?

Residents in 45 jurisdictions currently cannot access an approved distribution provider, although FTX says additional coverage may become available in the future.

Why are some creditors receiving more than 100%?

The percentages refer to recoveries on court-approved claim values, which were based on cryptocurrency prices at the time of FTX’s bankruptcy, not today’s market prices.