FTX to Pay Creditors Another $900 Million: Here’s Who Gets the Money

The former cryptocurrency exchange giant, FTX, announced yesterday that it will begin its fifth creditor distribution at the end of the month, pushing the total announced repayments beyond $10 billion nearly four years after its collapse. The next batch of repayments is $900 million, aligning with the company’s Chapter 11 reorganization plan.

FTX’s press release stated that July 31 is the start date, after which eligible creditors are expected to receive their funds via BitGo, Kraken, or Payoneer within three business days. This repayment applies to creditors holding allowed claims in FTX’s Convenience and Non-Convenience Classes who completed required procedures by June 16.

The actual payment size depends on the creditor class. Users of the global and US exchanges (FTX.com and FTX US) will receive an additional 9% under Class 5a, bringing their cumulative recovery to 105% of the value of their approved claims. General unsecured creditors and holders of crypto loan claims will each receive an incremental 3%, totaling 103%. Convenience-class creditors, typically smaller customer claims, will get a cumulative 120% of their approved claims after the latest repayment.

FTX also plans to distribute $18 million to eligible preferred shareholders on July 31, bringing total payments from the Preferred Shareholder Remission Fund Trust to $95 million.

These repayment figures do not mean customers have been made whole in crypto terms. Claims were valued in US dollars based on crypto prices around FTX’s bankruptcy in November 2022, before major price rallies for most assets. For example, Bitcoin traded around $20,000 when FTX collapsed; despite corrections since its 2025 peak, it remains over 200% higher. Thus, receiving 105% or 120% of initial claims in USD may still be significantly less than the present-day value of the crypto assets held on the platform.

FTX’s former CEO, Sam Bankman-Fried, convicted in 2023 on fraud and conspiracy charges for misallocating over $8 billion in customer funds, remains in prison. He sought clemency, especially after President Donald Trump pardoned Changpeng Zhao and Arthur Hayes. However, in a unanimous vote this week, the Senate ruled that under no circumstances should Bankman-Fried receive executive clemency, including a pardon or commutation.

Source: https://cryptopotato.com/ftx-to-pay-creditors-another-900-million-heres-who-gets-the-money/