FTX to Start Fifth Creditor Distribution on July 31, Paying Out $900 Million

FTX, the bankrupt cryptocurrency exchange, is entering the fifth round of creditor repayments. About $900 million will be distributed in this round.

Cointelegraph reported on July 17 that the FTX Recovery Trust will begin distributing about $900 million to creditors on July 31. Eligible recipients include creditors with convenience claims and general claims under the reorganization plan. They will receive the funds within one to three business days through accounts at BitGo, Kraken and Payoneer.

Recovery rates will vary by claim size. Creditors with claims of less than $50,000 will receive 120% of principal, while those with larger claims will be paid 103% to 105%.

Former FTX Chief Executive Officer Sam Bankman-Fried is serving a 25-year prison sentence after being convicted in 2024 of misusing customer funds. He sought a pardon from U.S. President Donald Trump, but Trump said in a January interview that he had no intention of granting one. The U.S. Senate also unanimously adopted a resolution this week opposing a pardon.