FTX to Send $900M to Creditors in Fifth Distribution Round

The FTX Recovery Trust says its next wave of payments to creditors tied to the defunct exchange will begin on July 31, with about $900 million earmarked for eligible claimants. The distribution is the fifth attempt under the trust’s court-approved recovery plan, continuing a multi-year process that has already returned roughly $10 billion since FTX filed for bankruptcy in November 2022.

In a notice released Friday, the trust said creditors in the plan’s “convenience and non-convenience classes” can expect payouts through BitGo, Kraken, or Payoneer accounts. Payments are scheduled to start on July 31 and are expected to land within one to three business days for those who are eligible.

Key takeaways

• The FTX Recovery Trust plans a new distribution of about $900 million starting July 31 for “convenience and non-convenience” creditor groups.
• Eligible creditors can receive funds via BitGo, Kraken, or Payoneer accounts beginning July 31, with transfers expected within one to three business days.
• Under the recovery plan, convenience claims under $50,000 are set to be reimbursed at 120%, while other claims are projected at roughly 103%–105%.
• The July 31 payment marks the fifth distribution since the bankruptcy filing, following earlier payouts including a $2.2 billion distribution in March.

Next FTX creditor payout set for July 31

According to the Friday notice, the upcoming distribution will send approximately $900 million to creditors classified under the recovery plan’s two groups: “convenience and non-convenience classes.” The trust did not indicate in the notice an alternate schedule for different claimants, instead tying the start of distribution to a single date—July 31—with the practical timeline depending on the payment rails used.

For claimants using BitGo, Kraken, or Payoneer, the trust said funds should be available within one to three business days after the July 31 start. This matters for creditors because the trust’s distributions have become a key milestone for claimants watching for liquidity after years of legal and administrative delays following FTX’s collapse.

How reimbursement levels work under the plan

The notice also reiterated the recovery plan’s reimbursement framework. Convenience claims under $50,000 are expected to receive 120% reimbursement, while non-convenience claims are projected to receive a distribution in the 103%–105% range.

That structure reflects a common approach in insolvency distributions: smaller claims are often treated more favorably to reduce friction and ensure faster, simpler resolution for retail-sized creditors. Larger claims typically receive slightly less, reflecting the available asset pool and the plan’s calculations across categories.

What has already been paid since FTX’s bankruptcy

The July 31 distribution will be the fifth creditor payment attempt connected to the trust’s recovery process. After a March distribution of $2.2 billion, the trust has paid out about $10 billion in total since FTX entered bankruptcy in November 2022.

Earlier coverage from Cointelegraph noted that the March distribution was part of the trust’s continuing efforts to unwind the exchange’s estate during a period when the broader crypto market was still reeling from the 2022 downturn. When FTX collapsed, it triggered multiple Chapter 11 filings across the sector, as liquidity stress and customer withdrawals rippled through the industry.

As payments continue, creditors will likely be attentive to whether later distributions match the same reimbursement percentages—or if the economics of recovery change as the trust works through remaining assets, legal complexities, and administrative processes.

Ongoing legal fallout and clemency debate

FTX’s recovery story has continued alongside criminal proceedings involving former leadership. Former FTX executives including CEO Sam “SBF” Bankman-Fried and Ryan Salame—co-CEO of FTX’s Bahamian affiliate—remain in federal prison connected to the misuse of customer funds.

Bankman-Fried, who pleaded not guilty to criminal charges, was found guilty and sentenced to 25 years in prison in 2024. Cointelegraph reported that his appeal to overturn his conviction and sentence was denied last month after a federal court upheld the prior New York ruling.

Alongside the court process, Bankman-Fried had sought clemency. Before the appellate decision became public, he applied for a presidential pardon from Donald Trump, and Trump indicated in a January interview he did not plan to grant such a request, according to reporting by The New York Times. Even so, this week the US Senate adopted a resolution opposing clemency for the former FTX CEO, and described bipartisan concern over the prospect of a pardon for a convicted felon.

Cointelegraph has also reported that lawmakers criticized Trump’s pardon of former Binance CEO Changpeng Zhao, adding to the broader political friction surrounding clemency decisions in high-profile crypto cases.

Meanwhile, the civil side of the fallout has continued. In May, the law firm Fenwick & West—according to coverage by Cointelegraph—agreed to pay $54 million to settle a class action lawsuit brought by former users. Cointelegraph also reported earlier that a group of 20 FTX users sued Fenwick & West for $525 million shortly before that settlement agreement.

With another distribution scheduled for late July, creditors will have a near-term datapoint for how the recovery plan is progressing. The next question is whether future distributions will continue on a similar cadence and whether remaining legal and asset-related variables—rather than payout mechanics—will ultimately determine how quickly the trust can close out the recovery process.