FTX announced a $900 million fifth distribution to creditors starting July 31, 2026, under its confirmed Chapter 11 Plan. The payout covers eligible holders of allowed claims in the Convenience and Non-Convenience Classes who met requirements by the June 16 Record Date, with BitGo, Kraken, and Payoneer handling disbursement. Dotcom Customer Entitlement Claims and U.S. Customer Entitlement Claims now reach 105% cumulative recovery, calculated against claim values from the November 2022 petition date. Cumulative distributions since early 2025 approach $10 billion, marking one of the largest creditor recoveries in cryptocurrency history. The distribution arrives one day after the U.S. Senate unanimously passed S. Res. 772 on July 16, rejecting federal clemency for convicted FTX founder Sam Bankman-Fried.
FTX Fifth Distribution Reaches Dotcom and U.S. Customers
The fifth round covers eligible holders of allowed claims in the Convenience and Non-Convenience Classes who met requirements by the June 16 Record Date. BitGo, Kraken, and Payoneer will handle disbursement, with most recipients seeing funds within one to three business days. The distribution follows waterfall priorities set in the confirmed Chapter 11 Plan.
Senate Passes Resolution Rejecting Bankman-Fried Clemency on July 16
The fifth distribution lands one day after the U.S. Senate unanimously passed S. Res. 772 on July 16, rejecting federal clemency for convicted FTX founder Sam Bankman-Fried. The nonbinding measure signals continued bipartisan resolve as bankruptcy recoveries climb past $10 billion.
Recovery Percentages by Claim Class
Class 5A Dotcom Customer Entitlement Claims receive an incremental 9% distribution, pushing cumulative recovery to 105%. Class 5B U.S. Customer Entitlement Claims receive 5%, also reaching 105% cumulative. Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims each receive 3%, hitting 103% cumulative. Class 7 Convenience Claims reach a cumulative 120% distribution. These percentages calculate against claim values from the November 2022 petition date, when Bitcoin traded near $16,000, far below current prices.
The Preferred Shareholder Remission Fund Trust will issue an $18 million payment on July 31 to eligible preferred equity holders, bringing total PSRFT payments to $95 million. Preferred holders must complete ownership certification, KYC checks, and tax forms before onboarding with BitGo or Payoneer.
Creditor Onboarding and Payment Process
Creditors seeking this or future payments must log into the FTX Customer Portal at claims.ftx.com, complete KYC verification, submit tax forms, and onboard with a chosen provider. Once onboarded, customers direct payments irrevocably to that provider and should contact the provider directly with account questions. Transferred claims pay out only to the registered transferee after a 21-day notice period. FTX customers who used the FTX DM product receive separate communications about their claims.
FTX reiterated its phishing warning tied to this distribution. The company said it will never ask creditors to connect a wallet, and official updates come only through verified channels listed at support.ftx.com.
FTX Collapse and Asset Recovery Timeline
FTX's collapse in November 2022 exposed an $8 billion shortfall after reporting revealed Alameda Research held large amounts of FTX's FTT token, triggering a bank run. FTX and more than 100 affiliates filed Chapter 11 that same month, with restructuring veteran John J. Ray III taking over from Bankman-Fried. Recoveries improved sharply as Bitcoin, Solana, and other crypto assets rebounded from 2022 lows, lifting the value of assets the estate could sell. Asset sales, clawback litigation, and settlements added further value, with FTI Consulting crediting the estate's process improvements with more than $7 billion in added recoveries.
The Chapter 11 Plan took effect January 3, 2025, clearing the way for structured payouts. The first distribution arrived in February at roughly $1.2 billion, followed by $5 billion in May 2025, $1.6 billion in September 2025, and $2.2 billion in March 2026. Bankman-Fried is serving a 25-year sentence, with appeals still pending. The estate has not announced a date for a sixth distribution, but disputed claims resolution and final wind-down work continue.
FAQ
What is the total amount of FTX's fifth creditor distribution starting July 31, 2026?
FTX announced a $900 million fifth distribution to creditors starting July 31, 2026, covering eligible holders of allowed claims in the Convenience and Non-Convenience Classes who met requirements by the June 16 Record Date.
What cumulative recovery percentage have Dotcom and U.S. Customer Entitlement Claims reached?
Dotcom Customer Entitlement Claims and U.S. Customer Entitlement Claims now reach 105% cumulative recovery, calculated against claim values from the November 2022 petition date when Bitcoin traded near $16,000.
What did the U.S. Senate pass regarding Sam Bankman-Fried on July 16?
The U.S. Senate unanimously passed S. Res. 772 on July 16, rejecting federal clemency for convicted FTX founder Sam Bankman-Fried, one day before the fifth distribution.
