FTX to Launch Fifth Creditor Payout on July 31
FTX will begin its fifth round of creditor repayments on July 31, returning approximately $900 million as the bankrupt exchange continues unwinding one of the largest insolvency proceedings in the crypto industry's history.
Summary:
- Eligible creditors who completed verification requirements by June 16 will receive payments through BitGo, Kraken or Payoneer.
- The latest distribution raises cumulative recoveries above 100% for several creditor classes.
- Preferred equity holders will also receive an additional payment through the shareholder remission fund.
- FTX urged customers to rely only on official communication channels amid ongoing phishing risks.
Repayments Continue as Bankruptcy Process Advances
The fifth distribution applies to creditors with allowed claims in both the Convenience and Non-Convenience classes that satisfied all pre-distribution requirements before the June 16, 2026 record date, including identity verification, tax documentation and onboarding with an approved distribution provider.
According to FTX, payments will be processed through BitGo, Kraken and Payoneer, with eligible recipients expected to receive funds within one to three business days after distributions begin on July 31.
The company said future record dates and payment schedules for additional distributions will be announced as the claims process continues.
Several Creditor Classes Surpass Full Recovery
The latest payments further increase recoveries across multiple creditor groups.
Class 5A (Dotcom Customers) and Class 5B (U.S. Customers) will each receive incremental distributions that lift their cumulative recoveries to 105% of allowed claims.
Meanwhile, Class 6A (General Unsecured Claims) and Class 6B (Digital Asset Loan Claims) will reach 103% following the latest payout, while Class 7 Convenience Claims remain projected to recover 120%.
The recovery levels reflect gains realized during the administration of the bankruptcy estate, including the appreciation of certain assets and successful monetization efforts since FTX collapsed in late 2022. The distributions also stand in contrast to many major insolvency proceedings, where unsecured creditors often recover only a fraction of their claims.
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In addition to creditor payments, FTX will distribute a Second Preferred Payment totaling $18 million to eligible preferred equity holders through the Preferred Shareholder Remission Fund Trust, bringing total payments under the program to $95 million.
Security Remains a Priority During Distributions
FTX cautioned creditors to use only the official FTX Customer Portal to monitor claims and payment information, warning that fraudsters continue to exploit the repayment process through phishing campaigns.
The estate reiterated that it will never ask customers to connect cryptocurrency wallets or disclose private keys in order to receive distributions. Creditors are encouraged to verify communications carefully and complete any outstanding requirements only through approved service providers.
As repayments continue, the FTX estate remains one of the most closely watched crypto bankruptcy cases, with the recovery process serving as a benchmark for how digital asset insolvencies can be managed under U.S. bankruptcy law. The latest distribution brings the estate another step closer to resolving outstanding customer and creditor claims while demonstrating the significant asset recoveries achieved since the exchange’s collapse.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
