FTX's Fifth Creditor Payment Marks a Decline in Disbursement Size
On July 30, 2026, FTX initiated its fifth creditor distribution round with approximately $900 million being allocated to holders of allowed claims. This payment is the smallest among five rounds since repayments began and signals that the bankruptcy process may be nearing completion. The earlier distributions were significantly larger—over $5 billion in May 2025, followed by about $1.6 billion later that year and roughly $2.2 billion in March 2026. The distribution covers various claim classes: Class 5A Dotcom customer claims reached a cumulative recovery of 105%, while U.S. customers (Class 5B) also hit the same level after adding another 5%. General unsecured and digital asset loan claims each gained 3% to reach 103%. A separate $18 million payment was made to preferred equity holders, bringing their total to $95 million. However, many creditors still cannot be paid due to unresolved issues such as ongoing claim reconciliations or jurisdictional restrictions. FTX also warned that allowed claimants who fail to onboard with approved platforms like BitGo, Kraken, or Payoneer within six months may lose their right to receive payments.
Topics: bankruptcy proceedings creditors distribution round FTX