The FTX Recovery Trust will distribute approximately $900 million to creditors on July 31, 2026, the fifth payout since Chapter 11 filing. Eligible holders of allowed claims in both the Convenience and Non-Convenience classes who completed pre-distribution requirements by the June 16 record date will receive funds through BitGo, Kraken, or Payoneer within one to three business days. The distribution pushes cumulative recoveries above 100% for most creditor classes, a rare outcome in a bankruptcy of this scale. FTX entered Chapter 11 in November 2022 following its collapse.
FTX Creditors Receive Funds Through Three Distribution Providers on July 31
The fifth distribution covers two broad groups: the convenience class, which includes retail traders and smaller creditors who make up the majority of the estate's creditor base, and the non-convenience class, which encompasses institutional counterparties and parties with more complex legal positions. Both classes are eligible for the July 31 payout, according to the FTX Recovery Trust press release. Dotcom customer claims will receive an additional 9%, lifting cumulative recoveries to 105% of their allowed claim value. U.S. customer entitlement claims will receive an additional 5% to reach the same 105% level. General unsecured and digital asset loan claims each receive 3%, bringing cumulative distributions to 103%. Convenience claims, the smallest accounts, reach a cumulative 120%, according to KuCoin's reporting.
Creditors will receive funds through one of three designated distribution service providers: BitGo, Kraken, or Payoneer. The selection was made during the onboarding process, and routing changes are typically locked once a record date passes. The June 16 record date served as the eligibility cutoff. Any creditor who had not completed KYC verification, tax form submission, and provider selection by that date will need to wait for the next distribution window. The estate has not announced a sixth distribution date, but disputed claims resolution and final wind-down work continue. Creditors seeking future payments must log into the FTX Customer Portal at claims.ftx.com and ensure all requirements remain current. Subsequent record and payment dates will be announced separately, the press release noted.
FTX Estate Returns Nearly $10 Billion Since January 2025
The fifth distribution brings total payouts to nearly $10 billion, one of the largest creditor recoveries in cryptocurrency history. The Chapter 11 Plan took effect on January 3, 2025, and the first distribution of roughly $1.2 billion followed in February 2025. A $5 billion round came in May 2025, $1.6 billion in September 2025, and $2.2 billion in March 2026, according to The Block's reporting. The estate's recovery was boosted by rising crypto prices after the 2022 lows, clawback litigation, and settlements including a $54 million payment from law firm Fenwick & West in May 2026.
The distribution also includes $18 million in payments to eligible preferred equity holders through the Preferred Shareholder Remission Fund Trust, bringing total PSRFT distributions to $95 million. That pool is separate from general creditor payments.
Creditor Recovery Rates Reach 105% to 120% Across Claim Classes
The cumulative recovery percentages tell a story of an unusually successful bankruptcy wind-down. Dotcom and U.S. customer claims now stand at 105%, general unsecured and digital asset loan claims at 103%, and the smallest convenience claims at 120%. Passing 100% is extraordinarily rare, and most collapsed exchanges pay back only a fraction of what creditors are owed. FTX has repaid the full claim and added interest on top.
Sunil Kavuri, a prominent representative for one of the largest FTX creditor groups, posted on X that claims over $50,000 received a 9% increment to reach 105%, while allowed claims under $50,000 that were not previously paid reached a cumulative 120%.
Petition-Date Valuation Limits Creditor Recovery Despite Rising Crypto Prices
The headline recovery rates obscure a deeper tension that creditors have debated since distributions began. The bankruptcy court valued claims at the November 11, 2022 petition date, when Bitcoin traded at roughly $16,871. A creditor who held one Bitcoin at the time of the collapse receives approximately $20,076 in cash at a 119% recovery rate. Bitcoin's price as of mid-July 2026 is multiples of that figure. The court ruled that bankruptcy law required valuation at the petition date, meaning customers would not benefit from the subsequent appreciation of the assets they originally held, according to Bitget's analysis.
This dynamic is especially acute for Bitcoin holders. Even at recovery rates approaching 160% of petition-date value for some classes, the cash payout still falls short of Bitcoin's current market price. Solana holders face an even wider gap, given SOL's dramatic rise from its 2022 lows. Creditors are, in legal terms, being made more than whole. In practical terms, many view the dollar-denominated recovery as a fraction of what their holdings would have been worth had FTX never collapsed.
The comparison to Genesis Global's bankruptcy illustrates the difference. Genesis returned assets in kind, allowing creditors to benefit from subsequent price appreciation. FTX's Chapter 11 structure constrained it to cash distributions pegged to petition-date valuations, a framework that has drawn persistent criticism even as the nominal recovery rates exceed expectations.
The fifth distribution lands as the estate approaches its final stages. Disputed claims resolution continues, and the wind-down team has not disclosed how much remains in the estate. For creditors still awaiting payment, the next record date will determine eligibility for future rounds. Bankman-Fried is serving a 25-year sentence, with appeals still pending.
FAQ
What did FTX announce for July 31, 2026?
The FTX Recovery Trust will distribute approximately $900 million to creditors on July 31, 2026, marking the fifth payout since the exchange entered Chapter 11 in November 2022. Eligible holders of allowed claims who completed pre-distribution requirements by the June 16 record date will receive funds through BitGo, Kraken, or Payoneer within one to three business days.
Why do FTX creditors receive more than 100% of their claim value?
The bankruptcy court valued claims at the November 11, 2022 petition date, when Bitcoin traded at roughly $16,871. The estate's recovery was boosted by rising crypto prices after the 2022 lows, clawback litigation, and settlements including a $54 million payment from law firm Fenwick & West in May 2026. Cumulative distributions now reach 105% for Dotcom and U.S. customer claims, 103% for general unsecured and digital asset loan claims, and 120% for convenience claims.
How much has FTX returned to creditors since January 2025?
The fifth distribution brings total payouts to nearly $10 billion. The Chapter 11 Plan took effect on January 3, 2025, and the first distribution of roughly $1.2 billion followed in February 2025. Subsequent rounds included $5 billion in May 2025, $1.6 billion in September 2025, and $2.2 billion in March 2026.
