FTX’s bankruptcy team said in its latest notice that the estate plans to start a new round of distributions by the end of this month, with about $900 million set to be paid to creditors. It will be the fifth repayment round since the restructuring plan began moving forward.
Estate payouts have approached $10 billion
In March, FTX distributed $2.2 billion to creditors. Since the repayment process formally began in 2025, the bankruptcy estate has paid nearly $10 billion to creditors and other claimants.
This round covers Convenience Class creditors and larger claims
According to the notice, the latest payout will include creditors in the Convenience Class under FTX’s bankruptcy restructuring plan, as well as other creditors with larger claims. The Convenience Class is made up mostly of retail users and smaller creditors, accounting for as much as 99% of total claims.
As in previous rounds, eligible creditors will receive funds through BitGo, Kraken, or Payoneer. Payments are expected to arrive within three business days from the start of distributions.
Cash repayment structure remains under criticism
Under the plan laid out by FTX’s bankruptcy administrators, most retail creditors are expected to receive compensation equal to about 118% to 142% of the value of the assets in their accounts when FTX collapsed in 2022.
Still, some creditors continue to object to the arrangement. Their criticism centers on the fact that FTX is not returning the original crypto assets held by users through in-kind repayment. Instead, distributions are being made in cash based on asset valuations at the time the exchange filed for bankruptcy in 2022.
With the prices of crypto assets such as Bitcoin and Ether rising sharply in recent years, some creditors argue that even a cash recovery above 100% does not make up for the lost upside from those holdings. They have called for repayments to be made in cryptocurrency.
Legal accountability tied to the FTX case is still expanding
Legal consequences linked to the FTX collapse are still unfolding. Fenwick & West, the Silicon Valley law firm that served as principal outside counsel to FTX US, was accused of helping and covering up financial fraud by founder SBF, Sam Bankman-Fried, before the exchange imploded in 2022. The firm agreed in May this year to pay $54 million to settle the case.