FTX to Distribute $900 Million to Creditors on July 31

FTX will distribute about $900 million to creditors on July 31 as part of its fifth payout under the exchange’s bankruptcy reorganization plan.

FTX will begin its fifth creditor distribution on July 31. The company expects to pay out about $900 million to eligible claim holders. The payments are part of the FTX bankruptcy reorganization plan, which was approved after the collapse of the crypto exchange in 2022.

Payments will be made to eligible creditors who have followed the pre-distribution requirements by the record date of June 16. FTX says that funds will be received within 1-3 business days after July 31 via each creditor’s preferred distribution channel.

FTX Continues Creditor Repayments Under Bankruptcy Plan

There are several categories of claims in the upcoming payout. Class 5A Dotcom Customer Entitlement Claims will be distributed an additional 9%. This means that these customers will have been paid 105% of their maximum claims.

FTX announced it will begin its Fifth Distribution of ~$900 million on 7/31/26 to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements.

— FTX (@FTX_Official) July 17, 2026

In the meantime, Allowed Class 5B U.S. Customer Entitlement Claims will be eligible for an extra 5% payout. They will also recover a total of 105%. Furthermore, the recovery for Allowed Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims will be increased by an additional 3%, respectively, to 103%.

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In addition, Allowed Class 7 Convenience Claim holders will have a cumulative distribution of 120%. The second payment is also expected to be made to eligible preferred equity holders on July 31.

FTX said that those who chose a Distribution Service Provider have agreed to receive funds via that provider. Therefore, the company will send payments directly to the selected platform instead of paying creditors in cash.

But there is one important point to note about the repayment process, according to some creditors. The valuation of claims is based on the price of cryptocurrencies as of November 2022. Bitcoin was trading close to $16,000 at the time. Bitcoin’s market value is much greater today.

As a result, some users have complained that they are not getting as much value as they would have gotten if their digital assets were still in their accounts. Although many creditors are getting over 100% of the claims they are entitled to, those claims are still based on previous market prices.

FTX Collapse Continues to Shape Crypto Industry

The new distribution is almost 4 years after FTX’s bankruptcy. It was one of the world’s largest cryptocurrency exchanges before its unexpected downfall in November 2022.

Since then, bankruptcy administrators have worked to recover assets and repay customers. The fifth distribution is another significant step in the recovery process, with multiple rounds of distributions already made.

In the interim, former FTX CEO Sam Bankman-Fried is still incarcerated. He asked for a new trial in June, but a federal appeals court denied him. The court upheld his conviction and 25-year prison sentence related to the collapse of FTX.

Prosecutors had charged Bankman-Fried with misappropriating about $8 billion from customers. The case was one of the biggest fraud prosecutions in the history of the cryptocurrency industry.

Furthermore, the decision put an end to another legal saga involving FTX. The incident remains a cautionary tale for the dangers of bad governance and oversight in digital asset markets.

Now, creditors are waiting for payments. The July 31 distribution will deliver about $900 million in additional recoveries and keep FTX’s bankruptcy proceedings moving forward.