FTX has set aside about $900 million for its fifth round of bankruptcy distributions scheduled to begin on July 31, but only creditors who passed review by June 16 and completed onboarding with a distribution provider will receive funds in this batch.
According to FTX, holders of approved claims in classes 5A, 5B, 6A, 6B, and 7 who meet those requirements should receive payment through BitGo, Kraken, or Payoneer within one to three business days starting July 31.
What creditors needed to complete before the deadline
FTX’s distribution dashboard FAQ says claims must be approved, and the original holder had to complete KYC by the June 16 record date. Valid tax forms, successful onboarding with a service provider, and sanctions screening also had to be completed by that date.
Creditors who did not finish those steps before June 16 are blocked from the July 31 distribution round.
Creditors in 45 jurisdictions still cannot choose a provider
As of publication, FTX’s service-provider eligibility page still displayed a May 22 list showing that residents in 45 jurisdictions cannot select a distribution provider. The jurisdictions listed are Afghanistan, Algeria, Bangladesh, Belarus, Burundi, Cambodia, Cameroon, Central African Republic, Chad, China, Colombia, Democratic Republic of the Congo, Republic of the Congo, Cuba, Egypt, Equatorial Guinea, Ethiopia, Fiji, Gabon, Guernsey, Honduras, Iran, Iraq, Kuwait, Lebanon, Lesotho, Libya, Macau, Malawi, Maldives, Moldova, Morocco, Myanmar, Nepal, North Korea, Qatar, Russia, Rwanda, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Ukraine, and Western Sahara.
FTX said provider coverage may change and more options may be added, so the list should be viewed as an outdated snapshot rather than a permanent prohibition. For now, when no available provider can serve a given jurisdiction, FTX delays the distribution.
Affected users must wait for coverage and watch for updates
Creditors affected by those restrictions need to wait for coverage to expand, monitor updates through the FTX customer portal and email, and then complete onboarding successfully before payment can be made.
FTX also said that even if the portal shows an option based on residence, the service provider still has the final say on onboarding.
If a creditor missed the June 16 onboarding deadline, later expansion in coverage will not restore eligibility for the July 31 payment. It may, however, create a path to later distributions if onboarding is completed and the plan’s deadlines are met.
Choosing a provider is a one-way decision
Creditors who can access a provider still face a major decision. Distribution proceeds cannot be split across multiple providers, and the choice cannot be reversed.
By onboarding, a creditor irrevocably gives up the right to receive cash directly from FTX and instructs FTX to send payment to the selected provider instead. Any issue involving funds once they reach that provider account must then be handled with the provider’s support team.
Six-month onboarding window carries a separate forfeiture risk
FTX’s dashboard FAQ also says that approved claim holders who fail to complete onboarding successfully within six months from July 31 may lose the right to that claim distribution.
Missing the June 16 deadline blocks payment in this round. Failing to complete onboarding within the longer window creates a separate risk of forfeiture.
Why some payout percentages are above 100%
FTX said its cumulative distribution rates of 105% for classes 5A and 5B, 103% for classes 6A and 6B, and 120% for class 7 do not represent returns relative to current cryptocurrency prices.
Under FTX’s claims framework, digital-asset claims are valued using a court-approved conversion table. Those percentages describe recovery against the approved plan claim amount, not against the assets’ market value today.