The FTX Recovery Trust says its next round of creditor repayments will begin on July 31, with approximately $900 million earmarked for eligible claimants. In a notice published Friday, the trust said funds will be distributed to creditors under the planโs โconvenienceโ and โnon-convenienceโ claim categories.
For eligible creditors, payments are expected to be sent to BitGo, Kraken, or Payoneer accounts, with transfers taking one to three business days after the July 31 start date. This will be the fifth distribution effort under the recovery plan.
Key takeaways
- The FTX Recovery Trust plans a new creditor payout starting July 31, totaling about $900 million.
- Claimants can receive reimbursement via BitGo, Kraken, or Payoneer, typically within one to three business days after July 31.
- โConvenienceโ claims under $50,000 are set to receive 120% reimbursement under the recovery plan, while other claims are expected at roughly 103โ105%.
- The payment marks the fifth payout round, following earlier large distributions since FTX filed for bankruptcy in November 2022.
What the July 31 distribution covers
According to the notice, the July 31 distribution will cover claimants in two groups: โconvenience and non-convenience classesโ included in the recovery plan. The trust estimates the payout will be โabout $900 millionโ to creditors through the reimbursement framework laid out for different claim sizes and circumstances.
The structure remains tied to reimbursement levels set by the plan. Creditors with convenience claims under $50,000 are scheduled to be reimbursed at 120%. For other eligible claimants, the distribution is described as falling in the 103โ105% range.
Progress since bankruptcy filing
FTX filed for bankruptcy in November 2022 as the broader crypto market downturn triggered waves of exchange failures and Chapter 11 filings. Since then, the Recovery Trust has pushed forward a multi-stage repayment process.
Earlier distributions included a March payout of $2.2 billion, referenced in earlier reporting by Cointelegraph. That round contributed to an overall payout figure of about $10 billion paid out to creditors, based on the trustโs cumulative repayment progress described in the same reporting context.
With the July 31 distribution, the trust is effectively continuing a steady cadenceโone that matters for creditors because it converts long-running claims into liquid reimbursements over time, reducing uncertainty even as final amounts and timing remain contingent on the recovery planโs execution.
FTX announces fifth distribution (PR Newswire)
Legal and settlement updates around the collapse
While the trust works through distributions, litigation tied to FTXโs collapse continues to run in parallel. Earlier reporting from Cointelegraph noted that Fenwick & West, the law firm that advised FTX before its collapse, agreed to pay $54 million to settle a class action lawsuit brought by former users.
Cointelegraph also reported that a separate lawsuit sought $525 million, filed days earlier by a group of 20 FTX users alleging the law firmโs role in the failure. These disputes underscore that FTXโs bankruptcy is not only about liquidation and repayment mechanicsโit is also entangled with contested responsibility among parties involved in the broader ecosystem of the exchangeโs operations and aftermath.
Cointelegraph on the $54 million Fenwick & West settlement
Cointelegraph on the $525 million lawsuit
Clemeny prospects for Sam Bankman-Fried face new political headwinds
Separately from the repayment schedule, the fate of former FTX CEO Sam โSBFโ Bankman-Fried remains a major ongoing storyline. Bankman-Fried was found guilty and sentenced to 25 years in prison in 2024 for his role in the misuse of customer funds, and his appeal was denied last month after a federal court upheld a New York court ruling, as covered by Cointelegraph.
Cointelegraph also reported that Bankman-Fried applied for a pardon from Donald Trump. Trump indicated in a January interview that he did not plan to grant such clemency. In this weekโs development, the US Senate unanimously adopted a resolution opposing clemency for Bankman-Fried.
Although the resolution cannot stop the president from issuing a pardon if he chooses to do so, it signals bipartisan resistance within Congressโan important political factor for anyone tracking how public pressure and legislative sentiment might shape clemency decisions.
The clemency debate has also been tied by lawmakers to broader concerns about how high-profile crypto-related criminal cases are treated. Cointelegraph reported that criticism has extended to Trumpโs decision to pardon former Binance CEO Changpeng Zhao following a UAE investment into Binance using a stablecoin linked to World Liberty Financial, a project associated with the Trump family business.
Cointelegraph on the denial of SBFโs appeal
Cointelegraph on SBFโs clemency bid
Cointelegraph on the Senate resolution opposing clemency
For creditors and market participants, the July 31 distribution date is the immediate practical milestoneโsomething to watch for in payment confirmations on supported platforms. At the same time, the political fight over clemency for Bankman-Fried remains unresolved, and developments there could still influence the broader public narrative around FTXโs fallout and its lingering legal and regulatory consequences.
