Catenaa, Thursday, July 23, 2026- FTX will begin distributing approximately $900 million to creditors at the end of July, marking the fifth round of repayments under its Chapter 11 bankruptcy plan and bringing total distributions since 2025 to nearly $10 billion.
The latest payout will be made to eligible creditors in both the Convenience and Non-Convenience classes, with funds expected to arrive within three business days through distribution partners BitGo, Kraken and Payoneer.
The Convenience class primarily includes retail users and smaller creditors, while the Non-Convenience class covers larger and more complex claims.
The new distribution follows FTX’s $2.2 billion repayment round completed in March as the bankruptcy estate continues returning funds to former customers affected by the exchange’s collapse in November 2022.
Under the court-approved restructuring plan, many retail creditors are expected to receive between 118% and 142% of the US dollar value of their claims based on asset prices at the time FTX entered bankruptcy.
However, the repayment process has remained controversial because customers are being compensated in cash rather than receiving the original cryptocurrencies they held before the exchange failed.
The bankruptcy estate has argued that distributions must follow the valuation framework established under the Chapter 11 proceedings, while some creditors continue to argue they should have been repaid in digital assets.
Separately, legal efforts connected to the FTX collapse continue. In May, law firm Fenwick & West agreed to pay $54 million to settle claims alleging it helped facilitate fraud linked to former FTX chief executive Sam Bankman-Fried.
The latest repayment round highlights the steady progress of one of the largest cryptocurrency bankruptcies in history, with the estate continuing to liquidate assets and return funds to creditors while related legal proceedings remain ongoing.
FTX filed for Chapter 11 bankruptcy protection in November 2022 after a liquidity crisis exposed billions of dollars in missing customer assets. Since repayments began in 2025, the bankruptcy estate has returned nearly $10 billion to creditors through multiple distribution rounds. The restructuring remains one of the largest and most closely watched insolvency cases in the digital asset industry.
