FTX to Distribute $900 Million to Creditors

FTX to Distribute Another $900 Million to Creditors

FTX, the once-dominant cryptocurrency exchange, announced yesterday that it will commence its fifth creditor distribution at the end of this month, pushing total announced repayments past $10 billion nearly four years after its collapse.

The upcoming disbursement amounts to $900 million, aligning with the company’s Chapter 11 reorganization plan. According to a press release from the firm, the distribution is set to begin on July 31. Eligible creditors are expected to receive their funds through BitGo, Kraken, or Payoneer within three business days. This repayment specifically applies to creditors with allowed claims in FTX’s Convenience and Non-Convenience Classes who had completed the necessary procedures by June 16.

The exact amount each creditor receives will vary by class. Users of FTX’s global and U.S. exchanges (ftx.com and FTX US) will see an additional 9% under Class 5a, bringing their cumulative recovery to 105% of the value of their approved claims.

General unsecured creditors and holders of crypto loan claims will each receive an incremental 3%, with their total expected to reach 103%. Convenience-class creditors, typically representing smaller customer claims, will receive a cumulative 120% of their approved claims following this latest repayment.

The defunct exchange also plans to distribute $18 million to eligible preferred shareholders on July 31, bringing the total payments from the separate Preferred Shareholder Remission Fund Trust to $95 million.

It is important to note that these repayment figures do not necessarily mean customers have been made whole in cryptocurrency terms. Claims were assessed in U.S. dollar terms based on crypto prices around FTX’s bankruptcy in November 2022, prior to significant price rallies for most of the involved assets.

Consequently, receiving 105% or 120% of initial claims in U.S. dollars may still represent a substantially lower value than the current market price of the cryptocurrency assets held on the platform at the time of its collapse. For example, Bitcoin was trading around $20,000 when FTX imploded. Despite subsequent corrections from its all-time high in October 2025, it remains more than 200% higher.

Sam Bankman-Fried, FTX’s former CEO and widely considered responsible for its rapid downfall, was convicted in 2023 on seven counts of fraud and conspiracy related to the misappropriation of over $8 billion in customer funds.

He remains incarcerated. Bankman-Fried had sought clemency, particularly after U.S. President Donald Trump issued pardons to Changpeng Zhao and Arthur Hayes. However, in a unanimous vote earlier this week, the Senate resolved that “under no circumstances should Samuel Bankman-Fried receive executive clemency, including a pardon, or commutation.”