FTX Repayment Sets $900 Million Creditor Payout for July 31

TLDR:

• The FTX repayment will distribute approximately $900 million on July 31 to eligible creditors meeting all verification requirements.
• Dotcom and United States customer claims will reach cumulative recoveries of 105% under the fifth bankruptcy distribution.
• General unsecured and digital asset loan claims will reach 103%, while Convenience Claims will receive cumulative recoveries of 120%.
• Preferred equity holders will separately receive $18 million, raising total payments from their remission trust to $95 million.

FTX will begin its fifth creditor distribution on July 31, paying approximately $900 million under its confirmed restructuring plan. The FTX repayment covers eligible Convenience and Non-Convenience claim holders who met the June 16 record date requirements.

Recipients should receive their money through BitGo, Kraken or Payoneer within one to three business days. FTX confirmed that claimants must complete identity checks, tax documentation, and provider onboarding before receiving payments.

The latest bankruptcy distribution continues a repayment process that began after FTX’s Chapter 11 reorganization became effective. Several claim classes will now receive cumulative distributions exceeding their allowed bankruptcy values.

However, those values remain based on cryptocurrency prices around FTX’s November 2022 collapse. Creditors therefore receive additional cash above approved claims, but not the full gains produced by the later cryptocurrency recovery.

FTX Repayment Raises Recoveries Across Creditor Classes

Allowed Dotcom Customer Entitlement Claims will receive an additional distribution equal to 9% of approved claim values. This payment raises their cumulative recovery to 105%.

United States Customer Entitlement Claims will receive another 5%, also increasing their total recovery to 105%. General Unsecured Claims and Digital Asset Loan Claims will each receive an additional 3%.

Those two groups will reach cumulative distributions of 103% following the FTX repayment. Convenience Claims will receive cumulative recoveries of 120%, according to the official payment schedule.

Actual percentages may vary slightly because of rounding and individual claim calculations. FTX plans to file detailed distribution figures with the bankruptcy court after the July 31 payment date.

Eligible FTX creditors previously selected a distribution provider through the customer claims portal. Their choices include BitGo, Kraken and Payoneer, depending on their location and account eligibility.

Selecting a provider directs FTX to send the cash payment directly to that company. Creditors must then contact their selected provider regarding account access or the availability of transferred funds.

Future payments will only cover claims recorded as allowed before the relevant record date. Transferred claims must also appear on the official register after the required objection period expires.

FTX Repayment Includes Preferred Shareholder Payment

FTX will make a separate $18 million payment to eligible preferred equity holders on July 31. That payment will come from the Preferred Shareholder Remission Fund Trust.

The second preferred payment will raise total distributions from the trust to $95 million. Eligible holders must have qualified by the June 16 preferred record date.

Institutions receiving preferred payments must onboard with BitGo. Individual preferred shareholders must use Payoneer and complete the required consent documents.

Additional requirements include ownership certification, identity verification, and completed tax forms. FTX began contacting possible preferred equity holders in January 2026.

The FTX repayment announcement follows a fourth distribution of approximately $2.2 billion completed during March. The estate has continued releasing funds as claims become allowed and reserves are adjusted

FTX previously proposed reducing its disputed claims reserve by about $600 million, from $2.4 billion to $1.8 billion. The planned reduction could release additional cash for approved claims under the bankruptcy distribution process.

The estate also repeated its warning about fraudulent emails and imitation claims websites. FTX said it will never request customers to connect cryptocurrency wallets when processing payments.

The post FTX Repayment Sets $900 Million Creditor Payout for July 31 appeared first on Blockonomi.