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FTX will begin distributing about $900 million to eligible creditors on July 31 in the fifth payment round under its Chapter 11 reorganization plan.
The payment will cover approved customer, unsecured creditor, digital asset loan and convenience claims. Creditors must have completed all required verification and onboarding steps by the June 16 record date.
Customer Claim Distributions Reach 105%
FTX.com customers in Class 5A will receive an additional 9% of their allowed claims, raising their cumulative distribution to 105%. U.S. customer claims in Class 5B will receive another 5%, also taking their total distribution to 105%.
General unsecured and digital asset loan creditors will each receive a 3% payment, bringing cumulative distributions for both classes to 103%. Convenience class creditors will reach a cumulative distribution of 120%. Actual percentages may differ slightly because of rounding.
Percentages Reflect Allowed Bankruptcy Claims
Claims are valued in U.S. dollars using cryptocurrency prices from FTX’s November 2022 bankruptcy date. The percentages above 100% include interest calculated under the court-approved plan.
They do not compensate creditors for crypto price gains since FTX collapsed. That distinction means the distributions can exceed allowed claim values while still falling short of what some creditors would have received if their crypto had been returned at current market prices.
BitGo, Kraken and Payoneer Process Payments
Eligible creditors should receive their funds through BitGo, Kraken or Payoneer within one to three business days after July 31. Customers selected a distribution provider during the claims process and directed FTX to send payments through that company.
Creditors must complete Know Your Customer checks, submit required tax forms and finish onboarding with one of the three providers. Holders of transferred claims must also appear on the official claims register after the required 21-day objection period.
FTX Warns Creditors Not to Connect Wallets
FTX warned creditors that it will never ask them to connect a crypto wallet. The warning comes as phishing campaigns continue to target claimants awaiting payments.
Creditors waiting for distributions should rely on their selected payment provider and official FTX claims communications rather than wallet-connection requests.
Separate $18M Payment Goes to Preferred Holders
FTX will also make a second payment of $18 million to eligible preferred equity holders on July 31. That distribution is separate from the $900 million creditor round and will raise payments from the Preferred Shareholder Remission Fund Trust to $95 million.
The fifth creditor payment follows a $2.2 billion distribution completed on March 31. FTX has not announced the record date or payment date for its sixth round, saying future distribution schedules will be provided later.
