FTX Recovery Trust to distribute about $900 million to creditors on July 31 in fifth payout round

The FTX Recovery Trust will begin its next distribution on July 31, with about $900 million set to go to claimants in the “convenience and non-convenience classes.” For PSPs, this is another reminder that long bankruptcy workstreams can keep moving for years, and that payout rails matter just as much as the headline number.

1. Eligible creditors will receive funds through their BitGo, Kraken or Payoneer accounts within one to three business days starting from July 31. This is the fifth round of repayments in FTX’s recovery plan.
2. Under the plan, convenience claims under $50,000 will receive a 120% reimbursement. Other claims will receive between a 103% and 105% distribution.
3. After a March distribution of $2.2 billion, the trust says it has paid out about $10 billion since FTX filed for bankruptcy in November 2022, after the crypto market downturn that pushed many exchanges into Chapter 11 protection.
4. Former FTX executives including Sam “SBF” Bankman-Fried and Ryan Salame are still in federal prison over their role in the exchange’s misuse of customer funds. Bankman-Fried was found guilty in 2024 and sentenced to 25 years in prison, and his appeal was denied last month.
5. In parallel, the legal fallout continues: Fenwick & West agreed in May to pay $54 million to settle a class action brought by former users, after 20 FTX users sued the firm for $525 million just days earlier.

For creditors, the key operational detail is simple: the money is moving through BitGo, Kraken and Payoneer, not some abstract court diagram. For the rest of the industry, FTX is still the case study in how bankruptcy, custody, and payout infrastructure become part of the product whether anyone planned for it or not.