The FTX Recovery Trust is set to distribute approximately $900 million to eligible creditors on July 31 as part of the fifth round of repayments following the cryptocurrency exchange’s collapse in 2022.
According to the latest announcement, eligible creditors are expected to receive their funds within three business days after distributions begin. Payments will be processed through the estate’s approved distribution partners, including BitGo, Kraken and Payoneer, depending on the claimant’s selected payout method.
The latest repayment marks another milestone in one of the largest bankruptcy recovery efforts in the history of the cryptocurrency industry. Since repayments began in 2025, the FTX estate has returned nearly $10 billion to creditors across multiple distribution rounds, with the upcoming payment bringing the cumulative total even higher.
Fifth distribution targets multiple creditor classes
The July 31 payout will include both Convenience and Non-Convenience Class creditors whose claims have been approved under FTX’s court-approved reorganization plan.
Convenience Class creditors, generally representing smaller claims, have already received significant recoveries in previous rounds. Larger customer and institutional claims continue to be processed through successive repayment waves as the bankruptcy estate liquidates remaining assets and resolves outstanding claims.
Eligible creditors who have completed Know Your Customer (KYC) verification, tax documentation and selected an approved distribution provider will automatically receive payments once the distribution begins. The estate stated that funds should arrive within one to three business days after July 31.
Recovery efforts continue nearly four years after collapse
FTX filed for Chapter 11 bankruptcy protection in November 2022 after a liquidity crisis exposed an estimated multi-billion-dollar shortfall in customer assets. The collapse triggered one of the most significant failures in crypto history, affecting more than one million users worldwide and sending shockwaves across the broader digital asset market.
Since then, the bankruptcy proceedings have been overseen by CEO John J. Ray III and the FTX Recovery Trust, which has focused on recovering assets through investments, litigation settlements, token sales and other estate holdings.
Over the past two years, the estate has secured billions of dollars through asset recoveries, enabling multiple repayment rounds that have exceeded initial expectations for many creditors.
Some creditors receive more than original claims
One of the more notable aspects of the FTX repayment plan is that several creditor classes are expected to recover more than 100% of their allowed claim values.
According to the latest distribution schedule, certain customer claim classes will reach cumulative recovery rates of approximately 105%, while Convenience Class creditors are projected to receive up to 120% of their approved claims after all distributions are completed. These figures reflect court-approved calculations based on bankruptcy claim values rather than current cryptocurrency market prices.
However, the repayment methodology has continued to generate debate among former customers. While many creditors have welcomed the unexpectedly high recovery percentages, others argue that claim valuations were fixed using cryptocurrency prices from the time of FTX’s bankruptcy in late 2022, meaning they will not receive the full benefit of subsequent market appreciation.
Bankruptcy case remains one of crypto’s largest
The FTX bankruptcy remains one of the most closely watched restructuring cases in the digital asset industry. Former FTX CEO Sam Bankman-Fried was convicted on multiple fraud-related charges and sentenced to 25 years in prison after prosecutors concluded that billions of dollars in customer funds had been misappropriated.
Despite the lengthy legal process, the continued pace of creditor repayments has been viewed as a significant development in the ongoing bankruptcy proceedings. The fifth distribution demonstrates that the estate continues making progress toward returning recovered assets to former customers while resolving remaining claims.
With another $900 million scheduled for release on July 31, total repayments from the FTX Recovery Trust are expected to approach the $10 billion mark, making it one of the largest creditor recovery efforts ever completed within the cryptocurrency sector.
