FTX Drops Another $900M on Creditors July 31 — The Dead Keep Paying 💸

Defunct crypto exchange FTX will distribute approximately $900 million to creditors on July 31 under its Chapter 11 Plan of Reorganization, marking the fifth repayment round from the collapsed firm.

According to a press release, distributions will go to holders of allowed claims in the Plan's Convenience and Non-Convenience Classes who completed pre-distribution requirements by the Record Date of June 16. Creditors can receive funds through their selected distribution service provider — Kraken, Payoneer, or BitGo.

The announcement noted that FTX will publish subsequent record and payment dates in due course. The estate also plans to issue a second distribution covering additional creditor classes at a later stage.

The $900 million payout adds to FTX's running creditor repayment total as bankruptcy proceedings continue. The exchange, once led by Sam Bankman-Fried, collapsed in November 2022 amid one of the largest corporate failures in crypto history. Bankman-Fried was later convicted on fraud and conspiracy charges and sentenced to 25 years in federal prison.

The latest distribution comes as the broader crypto market rebounds, following recent escalation tied to conflict involving the U.S. and Iran. FTX's creditors — many of whom have waited nearly three years for partial recovery — will see funds begin landing in accounts through the listed service providers once the July 31 process commences.