- FTX’s fifth distribution will pay about $900 million to eligible creditors beginning July 31.
- Customer entitlement claims will reach 105% recoveries, while Convenience Claims will total 120%.
- Eligible creditors should receive payments through BitGo, Kraken, or Payoneer within three business days.
FTX announced it will begin distributing about $900 million to eligible creditors on July 31 under its Chapter 11 reorganization plan. The fifth payout covers approved Convenience and Non-Convenience claims that completed required pre-distribution steps by the June 16 record date. Eligible creditors should receive funds through their selected provider within three business days.
Distribution Covers Multiple Claim Classes
According to FTX, eligible creditors selected BitGo, Kraken, or Payoneer to receive distributions. Customers who completed onboarding directed FTX to send payments directly to those providers.
The company said Allowed Class 5A Dotcom Customer Entitlement Claims will receive an additional 9%. Consequently, cumulative recoveries for those claims will reach 105%. Meanwhile, Allowed Class 5B U.S. Customer Entitlement Claims will receive another 5%.
Their cumulative distributions will also reach 105%. General Unsecured Claims and Digital Asset Loan Claims will each receive an additional 3%. As a result, cumulative recoveries for both classes will increase to 103%.
Convenience Claims will reach cumulative distributions of 120%. Notably, the Convenience Class generally includes retail customers and smaller creditors.
Preferred Equity Holders Receive Second Payment
Alongside creditor distributions, FTX confirmed a second payment for eligible Preferred Equity Holders on July 31. The payment follows the Preferred Shareholder Agreement and the approved reorganization plan.
The company will distribute $18 million through the Preferred Shareholder Remission Fund Trust. That payment will raise total distributions from the trust to $95 million.
To qualify for future payments, eligible holders must complete ownership certification, identity verification, tax documentation, and onboarding requirements. Institutions must use BitGo, while individuals must onboard through Payoneer.
Estate Outlines Payment Process
FTX said subsequent record dates and payment dates will be announced later. Meanwhile, creditors meeting the June 16 record date should receive funds within one to three business days after July 31.
The estate said customers who selected a distribution provider permanently waived direct cash payments from FTX. Instead, the company will transfer approved distributions directly to the chosen provider.
According to the announcement, the fifth distribution increases total announced repayments to nearly $10 billion since creditor distributions began. However, approved claims continue using U.S. dollar values established during the company’s 2022 bankruptcy process.
