FTX Approves $1.9 Billion Fifth Payout as Creditors Receive Up to 120% of Claims

The FTX Recovery Trust has launched its fifth round of creditor repayments, distributing approximately $1.9 billion to eligible claimants as part of the ongoing bankruptcy process. According to the company, creditors should receive their funds within one to three business days, marking another milestone in the wind-down of the failed cryptocurrency exchange.

The latest distribution follows FTX’s court-approved bankruptcy plan, which determines repayment amounts based on creditor classifications. Under the plan, international customers will receive 105% of their approved claims, including a 9% annual interest payment. U.S. customers will also receive 105%, while several other creditor groups are set to recover 103%. Smaller claims receive the highest recovery rate, reaching 120%.

This marks the fifth repayment since distributions began in 2025. Combined with the previous four rounds, FTX has now returned roughly $10 billion to creditors, including a $2.2 billion payout completed in March.

FTX’s ability to repay more than 100% of approved claims is highly unusual in bankruptcy cases, where creditors often recover only a fraction of their losses. The additional payments reflect interest that has accrued at 9% annually since the exchange collapsed in November 2022 under founder Sam Bankman-Fried.

The restructuring effort, led by John Ray III, has recovered more than $14 billion through asset sales and other measures. One notable transaction was the sale of FTX’s stake in AI company Anthropic for about $1.3 billion, although that investment would be worth considerably more at current valuations.

Despite the strong recovery, payouts are calculated using cryptocurrency prices from late 2022. Because digital asset prices have surged since then, many creditors receive less than the current market value of the crypto they originally held.

The latest distribution also narrows the recovery gap for international customers, who previously lagged behind U.S. creditors and faced additional complications over foreign claims.

FTX confirmed that preferred shareholders are scheduled to receive a second payment on July 31, adding $18 millionand bringing their total recovery to $95 million—a rare outcome for equity holders in bankruptcy proceedings.

The company has not announced the timing or value of a sixth distribution. It also reminded users that purchased claims require a 21-day waiting period before becoming eligible for repayment and warned creditors to remain alert for scams, emphasizing that it will never ask users to connect their cryptocurrency wallets.