Quick Take
- Eligible recipients of this “fifth distribution” are expected to receive their funds within three business days starting July 31.
- In March, FTX distributed $2.2 billion to creditors.
FTX said it will start distributing roughly $900 million to creditors beginning at the end of the month, according to an announcement from Friday.
This marks the fifth distribution for the failed crypto exchange plans on making as part of its bankruptcy. In March, FTX distributed $2.2 billion to creditors. So far, the company's bankruptcy estate has distributed nearly $10 billion to creditors and other claimants since repayments began in 2025.
Similar to last distribution, eligible recipients part of the company's Chapter 11 bankruptcy plan's Convenience and Non-Convenience classes are expected to receive their funds within three business days, paid out by BitGo, Kraken, or Payoneer.
The exchanges convenience class typically refers to the retail traders and smaller creditors who comprise the vast majority of FTX's creditor base, whereas the non-convenience designation involves larger or more complex claims.
FTX‘s bankruptcy estate has generally tried to repay retail creditors between 118% and 142% above the value of their holdings at the time of the exchange’s collapse in 2022, though it has also faced criticism for not repaying assets in kind.
In May, Silicon Valley law firm Fenwick & West, which served as FTX US's principal outside counsel before the exchange's 2022 collapse, agreed to pay $54 million to settle claims that it helped enable Sam Bankman-Fried's fraud.
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