FTX’s bankruptcy management team released an announcement stating that it plans to begin the fifth round of repayments at the end of July 2026, distributing about $900 million to creditors. Since officially starting the repayment process in 2025, FTX has cumulatively transferred nearly $10 billion to creditors and other claimants (this year’s March fourth round distributed $2.2 billion).
FTX Repayment Timeline: Cumulative Nearly $10 Billion
According to the FTX bankruptcy management team announcement, the key milestones for the repayment process are as follows:
2025: FTX formally launched the repayment process, starting the first round of distributions
March 2026: Fourth round of repayments, distributing $2.2 billion to creditors
End of July 2026: Fifth round of repayments, expected to distribute about $900 million to creditors
Cumulative transfers: Since launching in 2025, cumulative payments to creditors and other claimants have reached nearly $10 billion
Compensation Eligibility, Calculation Method, and Payment Channels
According to an FTX announcement, compensation recipients include creditors in the “Convenience Class” (accounting for about 99% of the total number of creditors, including retail investors and small- to mid-sized creditors) and creditors with larger claim amounts. For most retail creditors, the compensation ratio is about 118% to 142% of the account asset valuation at the time FTX filed for bankruptcy in 2022, paid out in cash (not as physical cryptocurrency).
Eligible creditors will receive payments through three channels: BitGo, Kraken, or Payoneer. Deposits are expected to be completed within 3 business days after distributions begin.
Cash Payout Dispute and Fenwick & West’s $54 Million Settlement
Some FTX creditors have criticized the cash conversion method, arguing that the prices of crypto assets such as Bitcoin and Ether have risen significantly in recent years. Even if the cash compensation ratio exceeds 100%, it cannot compensate for the opportunity cost of missing out on the asset’s appreciation. As a result, they are urging FTX to return assets in cryptocurrency (in-kind repayment).
On legal liability, the Silicon Valley law firm Fenwick & West, which previously served as FTX US’s chief outside legal counsel, agreed in May 2026 to pay a $54 million settlement after being accused of helping to assist in and conceal the financial fraud committed by founder Sam Bankman-Fried (SBF) before the 2022 FTX collapse.
FAQ
When will FTX’s fifth round of repayments be made, and how much will be distributed?
According to the FTX bankruptcy management team announcement, the fifth round of repayments is expected to begin at the end of July 2026, distributing about $900 million to creditors. Since FTX launched the repayment process in 2025, it has cumulatively paid out nearly $10 billion.
What is the compensation ratio for retail creditors, and how do they receive it?
According to the announcement, for most retail creditors (the “Convenience Class”), the compensation amount is about 118% to 142% of the account asset valuation at the time FTX went under in 2022, paid out in cash. Payments are received via BitGo, Kraken, or Payoneer, and deposits are completed within 3 business days after distributions.
How much settlement money did Fenwick & West pay in the FTX case?
According to reporting, Fenwick & West—accused of assisting in concealing Sam Bankman-Fried’s financial fraud before the 2022 FTX collapse—agreed in May 2026 to pay a $54 million settlement to resolve the matter.
