FTX Bankruptcy Estate Plans $900 Million Distribution, Total Payouts Hit $10 Billion
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The bankruptcy estate of defunct crypto exchange FTX will distribute about $900 million to eligible creditors on July 31, 2026, bringing total payouts to nearly $10 billion since 2025 and enabling verified users to receive funds within three business days via partners BitGo, Kraken and Payoneer. Estate managers raised recovery rates (Dotcom claims +9 percentage points to 105%, US claims +5 points to 105%, unsecured and loan classes +3 points) and will pay $18 million to preferred equity holders (totaling $95 million), a move that materially improves creditor restitution and signals stronger liquidation outcomes while cautioning about phishing risks.
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- The bankruptcy estate of FTX will be making its fifth distribution by making available nine hundred million dollars for eligible creditors.
- The total amount distributed will therefore reach almost ten billion dollars since the initial stage of the liquidation process began in 2025.
The remains of the defunct crypto exchange FTX will be initiating yet another massive distribution of funds this month. The bankruptcy estate will start the distribution of approximately $900 million to eligible global creditors from July 31, 2026. This very important step comes at the end of a highly organized process of liquidation, which has seen huge sums of money distributed. The estate has been distributing almost ten billion dollars to affected individuals since the official launch of distributions in 2025.
The users who have been verified should be able to receive their money safely via any of the approved distribution partners within three business days. The distribution partners who have been selected to execute the current operation include reputable industry players such as BitGo, Kraken, and a digital payment service provider known as Payoneer. This large distribution comes in after the successful distribution of two billion dollars, which was carried out earlier in March.
FTX announced it will begin its Fifth Distribution of ~$900 million on 7/31/26 to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements.
— FTX (@FTX_Official) July 17, 2026
Achieving Multiyear Restitution Benchmarks
This latest distribution plan includes some slight variations in the percentage recovery rates for the various tiers of allowed client claims. In the case of Dotcom customer claims, they will receive nine more percentage points to accumulate a total recovery rate of 105%. Similarly, in the case of the United States customer claims, they will also receive five more percentage points to accumulate that exact recovery rate. Unsecured claims and digital asset loan classes will get three more percentage points from the managers.
Additionally, the estate shall pay out $18 million to qualifying preferred equity members on July 31. This takes the total sum of payments to preferred shareholders via remission to $95 million. Nonetheless, the administrators have made several cautions about phishing emails and fraudulent claim portals. Official spokespeople remind everyone that the estate will not request connecting a personal crypto wallet at any point.
In mathematical terms, this means that the recovery figures surpass the initial prices quoted in the infamous November 2022 market crash by far. Indeed, creditors get more money than what was the bankruptcy value of their positions. Nonetheless, the previous users do not benefit from the entire recovery of the digital assets market.
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