FTX pays out $900M tomorrow and starts a six-month clock on stragglers
FTX begins its fifth creditor distribution on July 31, sending roughly $900 million to eligible claim holders via BitGo, Kraken, or Payoneer. Creditors who miss onboarding within six months risk forfeiting their payout.
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Fifth distribution kicks off July 31
FTX is set to begin its fifth creditor distribution on July 31, sending approximately $900 million to eligible claim holders. The payout covers holders of allowed claims in the Convenience and Non-Convenience Classes who completed pre-distribution requirements by the June 16, 2026 record date. Eligible creditors should expect to receive funds from their selected distribution service provider, either @BitGo, @krakenfx, or @Payoneer, within one to three business days from July 31.
The payout lifts cumulative recoveries to 105% for Dotcom and U.S. customer entitlement claims and 103% for general unsecured and digital asset loan claims. Convenience class claims reach 120% cumulative recovery. Passing 100% is rare in bankruptcy. Most collapsed exchanges pay back only a fraction. Here, FTX repaid the full claim and then added interest on top.
Six-month deadline and excluded creditors
The distribution also starts a countdown for those who have not yet completed onboarding. Allowed claim holders who fail to finish the process within six months of July 31 may forfeit their distribution rights entirely. Meanwhile, creditors in 45 jurisdictions still have no approved provider available to onboard with, leaving a portion of the global creditor base in limbo.
Claimants must complete pre-distribution requirements including KYC verification and tax forms before they can receive funds. Some creditors have criticized the pace of the process, pointing to KYC hurdles and delays for international claimants.
Cumulative distributions to creditors have now surpassed $10 billion since payouts began in early 2025. Prior rounds delivered roughly $1.2 billion in February 2025, $5 billion in May 2025, $1.6 billion in September 2025, and $2.2 billion in March 2026. Also on July 31, $18 million is to be paid to eligible preferred equity holders, bringing total payments from the Preferred Shareholder Remission Fund Trust to $95 million.
FTX Official Press Release via PR Newswire: Fifth Distribution Announcement | Bitcoin.com News: FTX Fifth Distribution Details | CryptoNews: FTX to Pay $900M to Creditors on July 31 in Fifth Round
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Crypto RichRich has been researching cryptocurrency and blockchain technology for eight years and has served as a senior analyst at BSCN since its founding in 2020. He focuses on fundamental analysis of early-stage crypto projects and tokens and has published in-depth research reports on over 200 emerging protocols. Rich also writes about broader technology and scientific trends and maintains active involvement in the crypto community through X/Twitter Spaces, and leading industry events.