FTX to Distribute About $900M to Creditors

FTX's bankruptcy estate will distribute roughly $900 million to creditors in a fifth payout, starting at the end of the month. The estate expects payments to reach eligible convenience and non-convenience creditors within three business days through BitGo, Kraken or Payoneer.

The convenience class covers retail traders and smaller claims. The non-convenience class includes larger or more complex claims. Both classes are identified in the court-approved plan and will be paid through third-party processors.

This is the fifth distribution since the estate began sending funds in 2025. In March the estate sent $2.2 billion. To date the bankruptcy estate has returned nearly $10 billion to creditors and other claimants.

The estate has repaid many retail creditors at rates between 118% and 142% of the value of their holdings at the time of the exchange’s 2022 collapse. Some creditors have objected to receiving cash equivalents rather than assets returned in kind.

Payments will be routed through custodial and payments partners. Timing to clear will depend on each processor’s settlement procedures and on claimant verification by the estate.

The bankruptcy process has included litigation and settlements with third parties. In May, law firm Fenwick & West agreed to pay $54 million to resolve claims tied to its work for FTX US.

FTX filed for Chapter 11 after customer withdrawals and operations collapsed in 2022. The estate continues to manage assets, pursue recoveries and implement the court-approved repayment plan.