FTX Fifth Payout Lifts Total Creditor Recoveries to Nearly $10B

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• FTX has started its fifth distribution round, returning approximately $900 million to eligible creditors.
• Total repayments have now reached nearly $10 billion since the exchange entered bankruptcy in 2022.
• Most customer and unsecured creditor classes have now recovered more than 100% of their allowed claims.
• The estate is entering its final distribution phase, with additional payment dates expected later.

This marks another milestone in one of the largest bankruptcy recoveries in the digital asset industry. Eligible creditors who completed all required pre-distribution steps before the June 16 record date are expected to receive funds through BitGo, Kraken or Payoneer within one to three business days.

Most Creditor Classes Have Now Exceeded Full Recovery

The latest payment further increases recoveries across nearly every major creditor class, with several groups now receiving more than the full value of their allowed claims.

The cumulative distribution now stands at:

• Convenience Claims: approximately 120% recovery.
• Class 5A (Dotcom Customer Entitlement Claims): 105% cumulative recovery following a 9% incremental payment.
• Class 5B (U.S. Customer Entitlement Claims): 105% cumulative recovery after an additional 5%.
• Classes 6A and 6B (General Unsecured Claims and Digital Asset Loans): 103% cumulative recovery following a 3% increase.

The Recovery Trust is also making a second payment of approximately $18 million to preferred equity holders, increasing total distributions to that group to roughly $95 million.

Why More Than 100% Doesn’t Mean Every Creditor Came Out Ahead

Although many creditors are receiving more than 100% of their approved claims, the recoveries are based on the U.S. dollar value of customer assets at the time FTX filed for bankruptcy in November 2022.

That distinction remains one of the most debated aspects of the restructuring. Bitcoin traded near $16,000 when the exchange collapsed, while many other digital assets were also near cycle lows. Creditors therefore receive cash calculated from those historical prices rather than the current market value of the cryptocurrencies they originally held.

As a result, investors who intended to maintain long-term crypto exposure have missed the substantial appreciation that followed during the recovery of digital asset markets over the past several years.

Final Phase of the Bankruptcy Process Comes Into View

With nearly $10 billion now distributed, the FTX estate is steadily moving toward the final stages of its wind-down.

The Recovery Trust said future record dates and any additional distributions of remaining assets will be announced through its official channels as the bankruptcy process continues. While most major creditor groups have now received substantially all of their expected recoveries, residual distributions remain possible as remaining assets are monetized and outstanding claims are resolved.

The fifth distribution underscores how the FTX bankruptcy has evolved from one of the crypto industry’s largest corporate failures into one of the most significant creditor recovery efforts ever completed in the sector.