The FTX Recovery Trust is set to distribute around $900 million to creditors beginning July 31. This marks the fifth major payment round since the crypto exchange's collapse in late 2022.
Details of the Upcoming Distribution
The repayment will be made through platforms like BitGo, Kraken, or Payoneer, with creditors expected to receive funds within one to three business days after the payout starts. Creditors fall into two groups: convenience class claims, which are under $50,000, will get 120% of their claim's value, while larger non-convenience claims will see between 103% and 105% repayments. These percentages are based on the U.S. dollar valuation of the claims at the time FTX declared bankruptcy, not current crypto prices, a method that has sparked some complaints from claimants preferring in-kind compensation.
Since the repayment process began in 2025, the total amount returned to creditors is nearing $10 billion. Earlier in March 2026, the trust disbursed $2.2 billion. The bankruptcy case stems from FTX’s Chapter 11 filing in November 2022, which left many customers without access to their funds amid a broader crypto market downturn.
Recent Developments and Reactions
Legal activity around FTX continues. In May 2026, a $54 million settlement resolved a class action against Fenwick & West, FTX’s former primary law firm. The suit was filed by a group of 20 platform users seeking $525 million just days before the settlement was reached.
Meanwhile, investors are watching how these repayments compare to similar situations in the crypto space. The repayment rates notably exceed the original asset values reported during bankruptcy. This contrasts with some trends seen in the market, like Ethereum’s recent price moves or Bitcoin’s market fluctuations, underlining ongoing volatility in the sector.
