The bankrupt cryptocurrency exchange FTX is moving forward with a major phase of creditor repayments. On March 18, 2026, FTX Trading Ltd. and the FTX Recovery Trust announced that approximately $2.2 billion will be distributed starting March 31, 2026, to eligible claim holders across multiple classes. Some convenience class claimants will even receive 120% of their original claim amount, exceeding full recovery.
Distribution Timeline and Channels
Eligible participants, both in convenience and non-convenience classes, must complete pre-distribution requirements including Know Your Customer (KYC) verification, tax form submission, and onboarding through the FTX Customer Portal with a designated distribution service provider. Funds are sent by the estate in U.S. dollars to the selected provider — Bitgo, Kraken, or Payoneer. Bitgo and Kraken allow users to withdraw fiat or convert balances into digital assets or stablecoins for external wallet transfers, while Payoneer enables direct fiat transfers to local bank accounts, subject to minimum thresholds and regional requirements. The statement noted: “Eligible creditors should expect to receive funds from their selected distribution service provider within 1 to 3 business days from March 31, 2026.” Once onboarding is completed, the choice of provider cannot be changed.
Recovery Rates by Claim Class
Allocation levels differ based on priorities established in FTX's Chapter 11 reorganization plan. The following cumulative recovery percentages have been set:
- Class 5A (dotcom customer entitlement claims for international users): Incremental 18% distribution, bringing total to 96%.
- Class 5B (U.S. customer entitlement claims): Incremental 5%, reaching full 100% repayment.
- Class 6A and 6B (non-customer claims, including general unsecured and digital asset loan claims): Each receives 15%, achieving 100% cumulative recovery.
- Class 7 (small convenience claims): Exceeds full repayment with a cumulative recovery of 120%.
These recovery levels significantly exceed the expectations held by many creditors in the months following FTX's collapse in November 2022, thanks in part to aggressive asset liquidation and legal recoveries by the estate.
Preferred Equity Payout Schedule
Separately, FTX has set April 30, 2026 as the record date for the first payments to preferred equity holders, with distributions scheduled for May 29, 2026. Payments will be issued through the Preferred Shareholder Remission Fund Trust to holders who complete ownership certification, verification requirements, and tax submissions. The announcement stressed that payments will only go to holders who have provided all required information, successfully verified eligibility, and are registered as holders of record on the FTX docket as of the April 30 record date.
Market Implications
The injection of $2.2 billion into the hands of former FTX creditors could have mixed effects on the cryptocurrency market. On one hand, the distribution may provide fresh liquidity, as some recipients might reinvest their fiat or stablecoin proceeds into digital assets. On the other hand, if a significant portion of recipients choose to sell major cryptocurrencies like Bitcoin or Ethereum to convert to fiat, short-term selling pressure could arise. However, given that the distribution is largely processed through centralized exchanges and payment platforms, the actual market impact will depend on recipients' behavior. More than three years after FTX's dramatic collapse, this payout marks a major milestone in what has become one of the most complex bankruptcy proceedings in crypto history.