FTX has initiated its fifth round of creditor distributions, totaling approximately $900 million, for holders of allowed claims who satisfied all prerequisites by the June 16 record date. Payments are being delivered through BitGo, Kraken, and Payoneer, with eligible creditors advised to expect funds within one to three business days starting July 31.

The distribution marks another step in one of the largest bankruptcy recoveries in crypto industry history. FTX collapsed in November 2022 after revelations about mishandled customer funds, and its founder, Sam Bankman-Fried, was convicted on fraud charges in 2023. The approved bankruptcy plan has since used recovered estate assets—including proceeds from liquidated holdings and settlements—to fund sequential creditor payouts.

Sunil, a well-known FTX creditor advocate on X, reported that distributions had begun appearing in accounts. While some users confirmed receiving their payments, others said nothing was visible through BitGo or their selected provider several hours later.

FTX Distribution are deposited in creditor accounts — Sunil (FTX Creditor Champion) (@sunil_trades) July 31, 2026

FTX has given providers up to three business days to process payments, meaning differences in arrival time alone do not indicate a problem with the distribution.

Guidance for Creditors Still Waiting

Creditors who do not yet see their payment should compare the status shown in the FTX Customer Portal with the account held at their selected distribution provider.

FTX's official provider guidance recommends the following steps:

• Confirm that the FTX Customer Portal shows an allowed claim and completed distribution requirements.
• Verify that onboarding with BitGo, Kraken, or Payoneer has been fully approved.
• Compare the FTX portal status with the provider dashboard and email notifications.
• Ensure that KYC verification, tax forms, and sanctions screening remain complete.
• Contact the provider if FTX marks the payment as distributed but it remains unavailable after the processing window.

Provider processing delays are not the only reason a payment may be missing. According to FTX's distribution FAQ, claims may remain disputed when a creditor's jurisdiction is still under review or is not currently eligible for distributions. Creditors in those locations may have completed all documentation but remain unable to receive funds until FTX approves a distribution route for their jurisdiction.

Recovery Percentages and What They Mean

The fifth distribution applies different recovery rates to each claim class:

• Dotcom Customer Entitlement Claims: An additional 9%, bringing cumulative distributions to 105%.
• US Customer Entitlement Claims: An additional 5%, also bringing cumulative distributions to 105%.
• General Unsecured and Digital Asset Loan Claims: An additional 3%, bringing cumulative distributions to 103%.
• Convenience Claims: Cumulative distributions of 120%.

These percentages are calculated against allowed US-dollar claim amounts recognized under the bankruptcy plan, generally using cryptocurrency values from around the time of FTX's November 2022 collapse. They are not measured against the current market value of the original Bitcoin, Solana, or other digital assets previously held on FTX.

A creditor receiving 105% of an allowed dollar claim may therefore still recover considerably less than the present-day market value of the cryptocurrency held on the exchange. The amount above 100% reflects interest or additional recovery on the fixed bankruptcy claim—not repayment of the original assets at current prices. This dollar-denominated approach differs from the model used in some other crypto bankruptcy cases, such as Celsius, where the restructuring plan tied certain distributions to the value of crypto assets at a specific plan-effective date.

FTX also scheduled a separate $18 million payment to eligible preferred equity holders, funded through the Preferred Shareholder Remission Fund Trust. This payment is distinct from the ordinary customer distributions.

Binance Litigation: A Separate Long-Term Matter

Separately, the FTX Recovery Trust recently secured a partial procedural victory in its case against Binance and former Binance CEO Changpeng Zhao. The US Bankruptcy Court for the District of Delaware allowed the trust to continue pursuing claims seeking the return of approximately $1.76 billion transferred during a 2021 share repurchase transaction.

The transaction involved Binance selling its stakes in FTX's international and US businesses back to companies controlled by Sam Bankman-Fried. The Recovery Trust alleges that FTX and Alameda Research were already insolvent at the time and could not legally fund the repurchase.

Other claims linking Binance and Zhao to damages caused by FTX's 2022 collapse were dismissed. The court's opinion and order does not order Binance to pay $1.76 billion; it allows the central clawback claim to proceed beyond the dismissal stage. Any recovery could still require discovery, further motions, a trial, and appeals.

The litigation has no bearing on the timing or funding of the current distribution, which uses assets already available under the approved bankruptcy plan. The Binance case could affect later creditor recoveries only if the trust ultimately prevails or reaches a settlement that produces additional distributable proceeds.

Creditors are therefore advised to assess the current payment round through their claim and provider status rather than developments in the separate Binance litigation.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Payment timing and eligibility depend on each creditor's claim status, jurisdiction, and completion of FTX's distribution requirements.