FTX will distribute roughly $900 million to creditors starting at the end of the month, according to an announcement from Friday. This marks the fifth distribution wave for the failed crypto exchange as part of its bankruptcy proceedings. The company's bankruptcy estate has distributed nearly $10 billion to creditors and other claimants since repayments began in 2025, following the exchange's collapse in 2022.
FTX Initiates Fifth Creditor Distribution of $900 Million
The $900 million distribution follows a March payout of $2.2 billion to creditors. Eligible recipients under the company's Chapter 11 bankruptcy plan's Convenience and Non-Convenience classes are expected to receive their funds within three business days. The exchange's convenience class typically refers to retail traders and smaller creditors who comprise the vast majority of FTX's creditor base, whereas the non-convenience designation involves larger or more complex claims.
BitGo, Kraken, and Payoneer to Process Payments Within Three Business Days
Payments will be processed by BitGo, Kraken, or Payoneer, consistent with the previous distribution mechanism. The bankruptcy estate has generally tried to repay retail creditors between 118% and 142% above the value of their holdings at the time of the exchange's collapse in 2022, though it has also faced criticism for not repaying assets in kind.
FTX Bankruptcy Estate Distributes Nearly $10 Billion Since 2025
Since repayments began in 2025, FTX's bankruptcy estate has distributed nearly $10 billion to creditors and other claimants. The March distribution alone accounted for $2.2 billion of this total. The current $900 million distribution represents the fifth wave of payouts under the Chapter 11 bankruptcy plan.
Fenwick & West Settles Claims for $54 Million in May
In May, Silicon Valley law firm Fenwick & West, which served as FTX US's principal outside counsel before the exchange's 2022 collapse, agreed to pay $54 million to settle claims that it helped enable Sam Bankman-Fried's fraud. The settlement addresses customer claims related to the firm's role prior to the exchange's collapse.
FAQ
What is FTX distributing to creditors at the end of the month?
FTX will distribute roughly $900 million to creditors starting at the end of the month as part of its fifth bankruptcy distribution wave. Eligible recipients under the Convenience and Non-Convenience classes are expected to receive funds within three business days via BitGo, Kraken, or Payoneer.
How much has FTX's bankruptcy estate distributed since 2025?
FTX's bankruptcy estate has distributed nearly $10 billion to creditors and other claimants since repayments began in 2025. This includes a $2.2 billion distribution in March and the current $900 million fifth-wave payout.
Why did Fenwick & West pay $54 million in May?
Fenwick & West, FTX US's former principal outside counsel, agreed to pay $54 million in May to settle claims that it helped enable Sam Bankman-Fried's fraud prior to the exchange's 2022 collapse.
