FTX Sets July 31 for $900M Fifth Creditor Payout

FTX Fifth Payout Sets July 31 Start

The new distribution has four separate payout rates, reflecting the claim classes in the confirmed plan. Allowed Class 5A Dotcom customer entitlement claims will receive an incremental 9%, bringing their cumulative recovery to 105%.

Allowed Class 5B U.S. customer entitlement claims will receive 5%, also taking cumulative recovery to 105%. General unsecured claims and digital asset loan claims, Classes 6A and 6B, each receive 3%, for a cumulative 103% recovery.

Class 7 convenience claims will reach 120% cumulatively. FTX did not provide a class-by-class dollar split for the approximately $900 million total and said actual percentages could differ slightly because of rounding.

The headline percentage is not a universal cash-on-hand figure for every person who used FTX. Eligibility depends on an allowed claim and the date-specific compliance steps, while the size of an individual payment depends on the relevant class and its recognized claim amount.

FTX also said $18 million will go to eligible preferred equity holders through the Preferred Shareholder Remission Fund Trust on July 31. That second preferred payment would bring payments from that fund to $95 million, a track separate from customer and creditor distributions.

This remains a recovery process, not a restoration of the platform that failed in November 2022. The prior legal backdrop remains unchanged after the Second Circuit upheld Bankman-Fried’s fraud conviction and sentence in June, as detailed in our coverage of his failed appeal.

FTX Claim Classes Reach 103% to 120%

The payment structure makes a critical distinction that can be lost in a single repayment percentage: FTX’s plan measures recoveries against the claim values recognized in bankruptcy, not against the price of a coin today. A creditor who held Bitcoin, Ether or another asset is not receiving that asset back in kind through this payment.

Instead, FTX says it will pay the distribution service providers in U.S. dollars. Its provider guidance lists BitGo, Kraken and Payoneer as the available options and says a selected provider ordinarily cannot be changed after onboarding.

For this fifth wave, the estate said a claimant had to complete KYC verification, tax forms, provider onboarding and sanctions screening by June 16. The FTX distribution dashboard guidance says failure to meet those requirements by the record date means the holder will not receive the July 31 payment.

That condition is especially important for transferred claims. FTX said a transferee must appear on the official claims register by a future record date and the required 21-day notice period must have expired without objection before a distribution can be made.

The process explains why a widely reported recovery percentage is not a payment guarantee for a particular claimant. Jurisdictional availability, claim status and completed account checks still determine whether the payment can be routed in the scheduled batch.

FTX Creditors Must Watch Provider Rules

The June 16 record date has already passed, so there is no action a late claimant can take to enter the July 31 batch. FTX says subsequent record and payment dates will be announced later, leaving the next timing question with the plan administrator.

Creditors who are eligible should be cautious with messages around the payment date. FTX says it will not ask users to connect a wallet, and its official guidance directs users to the Customer Portal rather than unsolicited links or wallet-signing requests.

Provider availability may also vary by place of residence. FTX’s support page says some jurisdictions cannot select a provider, while the estate continues assessing additional eligible locations. That is an operational restriction, not evidence that a claim has been rejected.

The July payment puts another measurable amount into a process that has begun to return funds but still has unresolved claims and future cycles. It also keeps the case relevant to the wider industry debate over exchange controls and customer-asset safeguards, which Daily Crypto Briefs tracked during the recent run of crypto platform losses.

The next points to watch are the release of class-level distribution details after July 31, the timing of the next record date and whether FTX expands provider access for currently ineligible jurisdictions. None of those steps has been announced yet.