Key Takeaways
- FTX Recovery Trust plans to release approximately $900 million to creditors beginning July 31
- This represents the fifth distribution cycle following the platform’s 2022 collapse
- Cumulative payouts have approached $10 billion since distributions commenced in 2025
- Smaller convenience claims below $50,000 qualify for 120% repayment; larger claims receive 103–105%
- Founder Sam Bankman-Fried continues serving his sentence; Senate opposes presidential clemency
On Friday, the FTX Recovery Trust revealed plans to initiate a distribution of approximately $900 million to creditors starting July 31. This represents the fifth installment of repayments following the cryptocurrency platform’s dramatic collapse in November 2022.
Qualified creditors will have access to their funds via BitGo, Kraken, or Payoneer. The distributions are scheduled to reach recipients within one to three business days following the July 31 start date.
Breakdown of Creditor Categories and Payment Percentages
The FTX bankruptcy repayment structure divides creditors into two distinct categories: convenience class and non-convenience class. Those holding convenience class claims — defined as amounts under $50,000 — stand to recover 120% of their original holdings.
Non-convenience class creditors, whose claims are either larger or more complicated, will see returns ranging from 103% to 105% of their initial value. Overall, the bankruptcy estate has managed to reimburse retail investors at rates between 118% and 142% above their holdings’ value when the exchange failed.
It’s important to note these percentages are calculated based on asset valuations from the bankruptcy filing date, not present-day cryptocurrency market prices — a methodology that has sparked frustration among certain creditors who preferred in-kind repayment.
Cumulative Distribution Totals
In March 2026, FTX completed a $2.2 billion distribution to its creditors. Including this upcoming July installment, aggregate repayments will reach nearly $10 billion since the payment process launched in 2025.
The FTX bankruptcy estate entered Chapter 11 proceedings in November 2022, stranding customer funds during a widespread cryptocurrency market crisis that claimed multiple exchanges.
In May 2026, legal practice Fenwick & West reached a $54 million settlement to resolve a class action complaint. The firm had acted as FTX’s primary external legal counsel prior to the exchange’s downfall. Twenty users had initiated legal action seeking $525 million shortly before the settlement was finalized.
Current Status of Sam Bankman-Fried
Sam Bankman-Fried, FTX’s former chief executive, received a 25-year prison term in 2024 following conviction for misappropriating customer deposits. His appellate challenge was rejected last month when a federal appellate court confirmed the initial verdict.
Bankman-Fried submitted a clemency petition to President Donald Trump. Trump indicated in January that he had no intention of granting the request.
Earlier this week, the United States Senate voted unanimously in favor of a resolution rejecting any potential clemency for Bankman-Fried. While the resolution carries no binding legal authority to prevent a presidential pardon, it demonstrates unified congressional resistance to the concept.
Legislators have additionally expressed concerns regarding Trump’s clemency decision for former Binance chief Changpeng Zhao, which followed a $2 billion investment into Binance from a UAE-based entity utilizing a stablecoin issued by the Trump family’s enterprise, World Liberty Financial.
FTX creditors can anticipate receiving payment verification from their designated payout service following July 31.
