FTX will distribute about $900 million to creditors, lifting total bankruptcy repayments near $11 billion through its fifth payout round. Retail and larger creditors will receive payments thr
FTX will distribute about $900 million to creditors at the end of the month, marking the fifth payout under its Chapter 11 bankruptcy plan. The latest distribution will lift the bankruptcy estate’s total repayments to nearly $11 billion since the compensation process began in 2025.
Eligible creditors in the Convenience and Non-Convenience classes will receive payments through BitGo, Kraken, or Payoneer. Moreover, qualified recipients are expected to receive their funds within three business days after distributions begin.
The upcoming payment follows a much larger distribution in March, when FTX returned $2.2 billion to creditors. Consequently, the bankruptcy estate has steadily reduced outstanding claims while moving one of the cryptocurrency industry’s largest restructuring efforts toward completion.
The Convenience class mainly includes retail traders and smaller creditors who represent most of FTX’s customer base. Meanwhile, the Non-Convenience class covers larger claims and more complex cases processed under separate procedures.
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FTX’s bankruptcy estate has repaid many retail creditors more than the value of their original holdings. Eligible customers have generally received between 118% and 142% of their account balances using asset prices recorded when the exchange entered bankruptcy in 2022.
However, many creditors remain dissatisfied with that approach. They have argued that repayments should have been made in the original cryptocurrencies instead of cash based on historical prices. Even so, the estate has maintained its court-approved repayment framework throughout the bankruptcy process.
Additionally, the use of BitGo, Kraken, and Payoneer has helped simplify distributions across multiple jurisdictions. Each payment round has relied on the same partners, allowing creditors to access their funds through established financial platforms.
The latest distribution also reflects the estate’s steady progress in resolving remaining claims while reducing the number of outstanding obligations under the restructuring plan.
The bankruptcy proceedings have advanced alongside several legal cases connected to FTX’s collapse. Those actions have focused on recovering funds and resolving allegations involving companies that previously worked with the exchange.
In May, Silicon Valley law firm Fenwick & West agreed to pay $54 million to settle claims that it helped facilitate fraud linked to former FTX chief executive Sam Bankman-Fried before the exchange failed in 2022.
The agreement resolved allegations involving the firm’s legal services to FTX US before the bankruptcy. Moreover, the settlement marked another step in the broader effort to address disputes arising from the exchange’s collapse.
The upcoming $900 million distribution moves FTX’s total creditor repayments close to $11 billion. Meanwhile, the bankruptcy estate continues resolving remaining claims as related legal proceedings gradually reach their conclusion.
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