FTX Drops Another $900M on Creditors, And Yes, Some Are Getting 120% Back 🤑

Defunct cryptocurrency exchange FTX will distribute approximately $900 million to creditors on July 31, marking the fifth round of repayments under its Chapter 11 Plan of Reorganization. The announcement was made by the FTX Recovery Trust in a Friday notice, with eligible claimants in the Plan's Convenience and Non-Convenience Classes set to receive funds through distribution service providers BitGo, Kraken, or Payoneer within one to three business days from the payment date. Creditors must have completed pre-distribution requirements by the Record Date of June 16 to qualify.

The distribution follows a payout structure that returns more than 100% of allowed claims. Convenience claims under $50,000 will receive a 120% reimbursement, while other claims will be repaid at 103% to 105%, depending on the claimant class. International customers are set to receive 105% of their claims, with US customers also receiving 105% and other creditor groups receiving 103%, according to figures shared by FTX on its official X account and by creditor advocate Sunil Kavuri. The 9% annual interest rate accrues from the exchange's collapse in November 2022 under founder Sam Bankman-Fried.

Including this round, the FTX Recovery Trust has paid out approximately $10 billion across five distributions since the company filed for bankruptcy in November 2022. A March 2026 distribution accounted for $2.2 billion of that total. The wind-down, led by restructuring veteran John Ray III, has gathered more than $14 billion in assets through early sales, including a roughly $1.3 billion sale of its stake in AI firm Anthropic. Preferred shareholders, who almost never recover funds in bankruptcy proceedings, are scheduled to receive a second payment on July 31 worth $18 million, bringing their cumulative recovery to $95 million.

Former FTX CEO Sam "SBF" Bankman-Fried remains in federal prison after being found guilty and sentenced to 25 years in 2024 on criminal charges related to the misuse of customer funds. A federal appeals court denied his challenge to the conviction and sentence last month. Bankman-Fried has applied for a presidential pardon from Donald Trump, who said in a January interview he did not plan to grant clemency. The US Senate this week unanimously adopted a resolution opposing clemency for the former FTX CEO, a measure that cannot block a pardon but reflects bipartisan opposition.

The FTX estate and its advisors continue to face related litigation. In May, law firm Fenwick & West, which advised FTX before its collapse, agreed to pay $54 million to settle a class action lawsuit filed by former users, brought days earlier by a group of 20 FTX users seeking $525 million. FTX has not announced a date or size for a sixth distribution, stating only that subsequent record and payment dates will be released in due course, while warning creditors about scams and emphasizing that it will never request wallet connections.