TLDR
- Nearly $900 million will be sent to FTX creditors beginning July 31 through the FTX Recovery Trust
- This represents the fifth distribution cycle following the platform’s 2022 collapse
- Cumulative distributions have approached $10 billion since the repayment process launched in 2025
- Smaller convenience claims below $50,000 are receiving 120% returns; larger claims get 103–105%
- Founder Sam Bankman-Fried is serving a 25-year sentence; the Senate opposes presidential clemency
On Friday, the FTX Recovery Trust revealed plans to initiate distribution of approximately $900 million to creditors starting July 31. This represents the fifth major disbursement cycle since the cryptocurrency platform’s dramatic failure in November 2022.
Creditors who qualify can obtain their distributions via BitGo, Kraken, or Payoneer. Funds should reach recipients within one to three business days following the July 31 start date.
Breakdown of Payment Recipients and Amounts
The repayment structure from FTX encompasses two primary categories: convenience class and non-convenience class claimants. Those holding convenience class claims — valued below $50,000 — are entitled to receive 120% reimbursement.
More substantial or complicated non-convenience claims qualify for returns ranging from 103% to 105% of their initial value. Retail creditors in the bankruptcy proceeding have typically been compensated at rates between 118% and 142% beyond the worth of their holdings when the exchange failed.
These percentages are calculated using dollar valuations from the moment of FTX’s bankruptcy petition, rather than present-day cryptocurrency market prices — a methodology that has sparked objections from certain creditors who preferred in-kind asset returns.
Total Distributions to Date
In March 2026, FTX dispersed $2.2 billion among creditors. This upcoming distribution will push aggregate repayments close to the $10 billion threshold since distributions commenced in 2025.
The FTX bankruptcy estate entered Chapter 11 proceedings in November 2022, stranding customers without access to their assets amid a widespread crypto market crisis that also toppled multiple competing exchanges.
In May 2026, legal firm Fenwick & West reached a $54 million settlement agreement to resolve a class action complaint. The law firm had functioned as FTX’s primary external legal advisor prior to the platform’s downfall. A coalition of 20 users had initiated legal action against the firm seeking $525 million shortly before settlement negotiations concluded.
Current Status of Sam Bankman-Fried
Former FTX CEO Sam Bankman-Fried received a 25-year prison sentence in 2024 following his conviction for misappropriating customer deposits. His appellate challenge was rejected last month when a federal appeals court affirmed the initial verdict.
Bankman-Fried submitted a request for presidential clemency to Donald Trump. Trump indicated in January that he had no intention of granting such relief.
Earlier this week, the US Senate voted unanimously to approve a resolution expressing opposition to any potential pardon for Bankman-Fried. While the resolution lacks legal authority to prevent Trump from issuing clemency, it demonstrates unified congressional resistance to the concept.
Congressional members have additionally voiced concerns regarding Trump’s pardon of former Binance CEO Changpeng Zhao, which followed a $2 billion investment into Binance by a UAE-based entity utilizing a stablecoin from World Liberty Financial, a Trump family enterprise.
Creditors of FTX should anticipate receiving payment verification from their selected disbursement platform following July 31.
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